House advances measure that would provide small business tax relief

The House of Representatives approved a bipartisan measure on Thursday that was introduced by Rep. Pat Tiberi (R-Ohio) to provide tax relief to small businesses.

Tiberi co-sponsored the bipartisan America’s Small Business Tax Relief Act, which would make small business expensing in the tax code permanent in an effort to create stability and growth for small businesses.

“This is a commonsense bill that’s about supporting small business so they can create jobs,” Tiberi said. “My bill provides predictability by making permanent a small business expensing measure that’s been part of the tax code in some form since the 1950s. Business owners across Ohio have told me that the measure reduces compliance costs for small businesses, reduces the cost of capital and improves cash flow allowing them to invest, expand and create jobs. I am pleased my colleagues agree that creating stability for small business owners can grow the economy.”

Small business owners, farmers and ranchers were able to immediately deduct up to $500,000 in property, equipment and computer software rather than having to depreciate the costs over time from 2010 to 2013. In 2014, however, the maximum limit for immediate deductions dropped to $25,000 per year.

The legislation would allow small business owners to expense up to $500,000 of investments in new equipment and property. The deduction would be phased out if an investment exceeds $2 million.

The measure would also repeal a $250,000 limit on real property expensing and institute adjustments for inflation.