The U.S. House of Representatives passed H.R. 636 America’s Small Business Tax Relief Act of 2015. This bill, sponsored by Rep. Pat Tiberi (R-Ohio) will make permanent the $500,000 expensing levels for small businesses under Section 179 of the tax code.
National Cattlemen’s Beef Association President Philip Ellis said permanency to the tax code is critical for cattlemen in order to make necessary purchasing decisions and informed business decisions. The passage of this bill allows farmers and ranchers to write off capital expenditures in the year that purchases are made rather than depreciate them over time. The passage of this bill follows a letter NCBA along with 33 other groups signed to Speaker of the House, Rep. Boehner, urging the permanency of Section 179 of the tax code.
“Section 179 small business expensing provides agricultural producers with a way to maximize business purchases in years when they have positive cash flow,” the letter reads. “Under the expired law the maximum amount that a small business can immediately expense when purchasing business assets instead of depreciating them over time is $25,000 adjusted for inflation.”
Agriculture requires large investments in machinery, equipment and other depreciable assets and the ability to immediately expense capital purchases provides an incentive for farmers and ranchers to invest in their businesses and offers the benefit of reducing the record-keeping burden associated with the depreciation.
“We appreciate Rep. Tiberi’s leadership on behalf of small businesses like so many in the cattle industry,” said Ellis, a Wyoming rancher. “We urge the Senate to take up similar legislation and continue working toward a comprehensive tax reform that provides a stable business environment.” – See more at: http://www.beefusa.org/newsreleases1.aspx?newsid=4729#sthash.X8areXn7.dpuf
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