U.S. Congressman Pat Tiberi (R-OH) today gave the following opening statement regarding his bill, H.R. 4457, America's Small Business Tax Relief Act, at today's Ways and Means Committee mark-up (Section 179) [Remarks as prepared]:
Mr. Chairman, thank you again for holding this mark-up. I am pleased to have the opportunity to discuss such an important piece of legislation which I introduced with Mr. Kind, America's Small Business Tax Relief Act.
This legislation would permanently extend small business expensing for equipment and property outlined in Section 179 of the tax code.
Section 179 allows small business owners to immediately deduct the cost of investments in property, equipment, and computer software rather than depreciating such costs over time.
This bill would create stability, certainty and simplicity for businesses by making permanent the $500,000 maximum expensing limit, rather than the lower current law limit of $25,000, which has raised and dropped numerous times over the years.
Making Section 179 permanent at the $500,000 level would reduce compliance costs for small businesses, reduce the cost of capital, and improve cash flow. This would allow small businesses to invest in their businesses, expand, and create jobs.
Continuously allowing this provision to expire, like others that we continuously and temporarily extended, makes it difficult for small businesses to plan and adds confusion and complexity.
I've heard from small businesses and farmers in Ohio that this important legislation will lead to economic growth and increased jobs. This bill is supported by groups like the NFIB, the Farm Bureau, and the Cattlemen's Association, and I look forward to working with them and the Committee to pass this legislation. Thank you again and I yield back.