This week, the U.S. House of Representatives will vote on H.R. 636, “America’s Small Business Tax Relief Act.” Small businesses are the backbone of the economy and a pathway by which millions achieve the American dream. H.R. 636 will provide important tax relief to small business across the nation. ATR supports this legislation and urges members to vote yes.
H.R. 636, sponsored by Representative Patrick J. Tiberi (R-Ohio) expands and updates Section 179 of the tax code to provide small business owners, farmers and ranchers with regulatory relief that will help reduce the cost of capital and allow them to more easily invest their hard-earned resources back into their businesses.
Specifically, this legislation will make permanent a tax provision allowing small employers to expense up to $500,000 of equipment purchases per year. If current law is not changed, small businesses can only expense $25,000 of purchases for things like computers, office furniture, manufacturing equipment, etc. The rest must be subject to a slow, multi-year deduction process known as “depreciation.”
For many Americans, starting a business is the reward for years of hard work, good decisions and innovative ideas. Each year, millions of Americans across the country invest countless hours, take out loans and enlist the help of friends and family in order to start their own business. This legislation will provide these small business owners with much needed tax relief that will help put them on the pathway to success.