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Permanent Tax Policy Encourages Businesses to Invest, Create Jobs

June 12, 2014

Businesses all across the country are applauding H.R. 4457, America’s Small Business Tax Relief Act of 2014, which will reduce the tax burden on small businesses by permanently extending Section 179 expensing.  At a time when economic growth is stagnant, making certain tax policy permanent encourages businesses to grow, invest and hire. 

Over 150 organizations representing millions of businesses across the country: “The roller-coaster, ad-hoc changes in the level of small business expensing, which have often been enacted retroactively in recent years, has greatly contributed to uncertainty and prevented long-term planning. Making the higher small business expensing limits permanent and predictable would greatly reduce uncertainty and reduce the incidence of tax policy driving business decisions.”

American Farm Bureau Federation: “Farm Bureau believes that Congress should end its practice of extending important business tax provisions for one or two years at a time. This practice makes it very difficult for farmers and ranchers to plan and adds immense confusion and complexity to the tax code. Long-standing tax provisions, like Section 179 small business expensing, should be made permanent at the 2013 level of $500,000.”

National Association of Manufacturers: “Having certainty over the tax treatment of critical investments will make planning for future investment significantly easier. Capital investment is key to economic growth, job creation and competitiveness. Consequently, enactment of this policy would amount to a major step towards a tax code that will promote investment.”

National Association of Realtors: “[T]he increased expensing…will incentivize the remodeling or rebuilding or many business properties in your district and throughout the nation, thus creating new jobs and increasing business activity….The passage of legislation that permanently restores the small business expensing threshold to $500,000 will go a long way towards improving economic growth, as well as reducing the very real burdens of uncertainty and excess complexity that small enterprises face.”

AdvaMed: “This important legislation would not only provide needed certainty for tax planning purposes, but would allow companies – including entrepreneurial developers of advanced medical technologies – to invest more heavily in their businesses while encouraging job creation and economic growth across the country.”

Small Business & Entrepreneurship Council: “To maximize their innovative capacity and hard work, entrepreneurs need certainty with respect to the tax system as it relates to business investment.  Making permanent Section 179 expensing at the $500,000 level will enable entrepreneurs to plan and invest with confidence.  Such expensing also reduces complexity, burden, and costs for small businesses, which allows entrepreneurs to focus their resources and time on productive activities.”

American Rental Association: “[A]fter more than 10 years of temporary changes to the expensing and phase-out levels it is time to permanently amend this policy to reflect the current economic realities of capital expenditures for America’s small businesses. Equipment and the imbedded technology that keeps small businesses competitive have increased in cost over the past two decades. ARA supports H.R. 4457 because it eliminates uncertainty by making the provision permanent and indexed for inflation, and it makes capital more affordable for small businesses.”

Heating, Ventilation, Air Conditioning and Refrigeration (HVACR) Industry: “We believe the most significant change in America’s Small Business Tax Relief Act of 2014 is the inclusion of language striking the exemption of air conditioning or heating equipment from the qualified investments eligible for Section 179 expensing.  This small modification will create tremendous energy savings opportunities for commercial building owners and small businesses across the nation.”

National Beer Wholesalers Association: “[E]fforts to make this important provision permanent will increase investments, create jobs and provide much-needed certainty for beer distributors and their small brewer partners.”

National Propane Gas Association: “By allowing small businesses to immediately deduct the cost of new equipment, tax compliance is simplified and capital is freed up to invest in their businesses.”