House to Consider Legislation to Permanently Increase Sec. 179 Levels
Later this week, the House is expected to vote on the America’s Small Business Tax Relief Act (H.R. 4457), which permanently increases Sec. 179 expensing levels.
Under current law, beginning in 2014, a taxpayer may immediately expense up to $25,000 of Sec. 179 property annually, with a dollar for dollar phase-out of the maximum deductible amount for purchases in excess of $200,000. H.R. 4457 would permanently increase the maximum amount and phase-out threshold to the levels in effect from 2010 through 2013 ($500,000 and $2 million respectively).
Additionally, the proposal includes adjustments for inflation, repeals the exclusion of air-conditioning and heating units from qualified expenses, and eliminates the $250,000 limit on real property qualifying for expensing.
ARSA strongly supports permanently increasing Sec. 179 expensing levels to promote growth and add certainty to the tax code. The association commends Congressman Pat Tiberi (R-Ohio) and the bill’s bipartisan supporters for their leadership on the issue.