Bill will make it more affordable for farmers, ranchers, and small businesses to purchase much-needed equipment, build their operations, and support their employees.
BOISE, Idaho – Today, U.S. Senators Jim Risch (R-Idaho) and John Barrasso (R-Wyo.) with several colleagues introduced the Small Business Growth Act to help small businesses, farmers, and ranchers purchase the equipment and supplies they need to build their operations and support their employees.
The Small Business Growth Act will reduce taxes for business owners looking to purchase equipment—including farming equipment, office furniture, manufacturing tools, machinery, commercial vehicles, and more. This will free up resources to go toward employee salaries, materials, and other critical business expenditures.
“The Gem State is filled with phenomenal small businesses that keep our state running,” said Risch. “With the Small Business Growth Act, Congress will incentivize small businesses to invest in new equipment by allowing those businesses to deduct these purchases from their taxes. I am committed to helping Idaho’s small businesses thrive, and the Small Business Growth Act will help businesses today and far into the future.”
“Small businesses are the backbone of Wyoming’s economy. We want to make sure they have every opportunity to succeed,” said Barrasso. “Right now, they face an uphill battle with record high inflation and a mountain of new regulations. The Small Business Growth Act will go a long way in helping Wyoming’s farmers, ranchers and small business expand their operations, better compete and hire more workers.”
Cosponsors of this legislation include Senators James Lankford (R-Okla.), Marsha Blackburn (R-Tenn.), Thom Tillis (R-N.C.), and Mike Braun (R-Ind.).
Background:
Currently, Section 179 of the Internal Revenue Code allows small businesses and farms to deduct the full purchase price of qualifying equipment, or certain depreciable business expenses. Under the 2017 Tax Cuts and Jobs Act (TCJA), the deduction cap for Section 179 was lifted to $1 million from $500,000, which helped small businesses get the equipment they need to expand their operations.
The Small Business Growth Act will build on this success by lifting the deduction cap to $2.5 million with an increased phaseout threshold of $4 million. An expansion of Section 179 will ensure more taxpayers can utilize full and immediate expensing while Congress seeks to reverse the phaseout and expiration of bonus depreciation under Section 168(k) – one of TCJA’s most powerful provisions. With the uncertainty of Section 168(k), it’s important to keep the cost of capital low for Main Street America and our nation’s farmers.
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