The U.S. House of Representatives on Jan. 31 advanced a tax relief package that includes a pro-small business bill offered by U.S. Rep. Blake Moore (R-UT).
The larger Tax Relief for American Families and Workers Act, H.R. 7024, which includes provisions from Rep. Moore’s Small Business Growth Act, H.R. 3661, now heads to the U.S. Senate for consideration.
“I am thrilled this package includes my Small Business Growth Act, which will allow small businesses to purchase essential equipment by increasing the cap on tax deductions for business investments under Section 179,” Rep. Moore said. “I urge my Senate colleagues to swiftly pass this legislation and bring economic relief to America’s families and businesses.”
Currently, Section 179 of the Internal Revenue Code permits small businesses to deduct the full purchase price of qualifying equipment. As part of H.R. 7024, Rep. Moore’s bill would lift the deduction cap to $1.29 million, an increase above the $1 million enacted in the 2017 Tax Cuts and Jobs Act, according to a bill summary provided by the congressman’s staff.
Rep. Moore’s bill aims to reduce tax bills for business owners who need to purchase equipment — including farming equipment, office furniture, manufacturing tools, machinery, and commercial vehicles, among other items — and would allow funds to go toward employee salaries, materials, and other business expenditures, the summary says.
The larger House-approved H.R. 7024, sponsored on Jan. 17 by U.S. Rep. Jason Smith (R-MO), would increase and modify child tax credit provisions; increase depreciation allowances to promote economic innovation and growth; provide special rules for the taxation of residents of Taiwan with income from U.S. sources; increase tax relief provisions for losses due to natural disasters and wildfires; and raise the low-income housing tax credit, according to the congressional record bill summary.
“This bipartisan, bicameral tax package is a major win for families, small businesses, and taxpayers across the country,” said Rep. Moore. “The bill’s pro-growth, pro-family policies enhance our competitiveness with China, support small businesses in Utah and across the country, combat fraud by ending a major COVID spending program, and help families struggling with inflated prices.”