Small Business Cheers Permanent Tax Extender And Senator Collins

Date: December 16, 2015

Small Business Cheers Permanent Tax Extender Introduced by Senator Collins

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

“Senator
Collins demonstrated, once again, her firm understanding of the economic
struggles faced by the small business community,” according to David Clough,
NFIB Maine state director. “She is front and center on what is clearly the most
positive thing Congress has done for small business in the past several years.
The people of Maine will reap the benefits of Senator Collins leadership
through the form of new investments and more jobs in our great state.”

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.

“For the past
several years, Senator Collins has fought against waiting until late December
to increase and extend the provision because she understood that the delay
caused increased uncertainty for small business and stalled economic activity
at the end of the year. The fact that she prevailed this year, along with her
colleagues in the Senate, is a huge relief for our members,” continued
Clough. 

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 small businesses in Maine have been longing
for,” said Clough.  “NFIB’s research predicts that nationally we will see
hundreds of thousands of new jobs as a result.”

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