New Jersey Small Business Cheers Permanent Tax Extender

Date: December 16, 2015

New Jersey Small Business Cheers Permanent Tax Extender

TRENTON (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 New Jersey.

“Small business in New Jersey
has been struggling to find something, anything, that will create positive
growth and for the first time in recent memory, there is a dialogue in Congress
that will help our members make new investments and create more jobs,”
according to Laurie Ehlbeck, NFIB New Jersey state director. “It’s not always
easy to remain positive as a business owner in our state but once passed, this
will be a step in the right director 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. Once passed, the
permanency will be a welcome change from the previous years,” explained
Ehlbeck.
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 New Jersey small businesses have been yearning for,” said
Ehlbeck.  “Our research predicts that nationally we’ll see hundreds of
thousands of new jobs as a result.”

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