Iowa Small Business Cheers Permanent Tax Extender

Date: December 16, 2015

Iowa Small Business Cheers Permanent Tax Extender

DES MOINES (December 16, 2015) – Small businesses
will no longer have to wait until the last minute every year to decide whether
to invest in new equipment, technology or capital upgrades under a bipartisan
deal unveiled late Tuesday night, and according to the National Federation
of Independent Business (NFIB)
the result is likely to be more jobs and a
stronger economy in Iowa.

 

“Creating a positive growth environment in Iowa is a
constant struggle. Today, for the first time in recent memory, Congress is
acting in a manner that will help our members make new investments and create
more jobs,” according to Kristin Failor, NFIB Iowa state director. “It’s not
always easy to remain positive as a business owner in our state but this
victory on Capitol Hill will be a step in the right direction for a level of
economic stability that has been lacking.”

 

NFIB has pushed for several years to make section 179 of the
IRS Tax Code permanent.  Under that provision, businesses can expense up
to $500,000 of new investment in heavy machinery, office equipment, computer
technology or many other big-ticket items that they need.  Small business
expensing has been a feature of the tax code for decades as a way to encourage
investment and growth.  When the Bush tax cuts expired, however, the
amount that small firms can expense dropped down to $25,000 and expires every
year unless Congress extends it.

 

“Congress waiting until the last minute to extend this
provision has created accounting chaos for small business owners and directly
resulted in our members holding off on making investments into their businesses
due to the uncertainty. The fact that it will now be permanent is a welcome
change from the past,” explained Failor.

 

With a bipartisan deal to make expensing permanent now
likely to pass through Congress, small businesses will be finally able to plan
out their investments.  The tax package, which is expected to receive
action tomorrow, will be a key vote for NFIB in the House and Senate.

 

“The tax benefit encourages businesses to make big
investments and the permanency creates predictability, something Iowa small
businesses have been yearning for,” said Failor.  “Our research predicts
that nationally we’ll see hundreds of thousands of new jobs as a result.”

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