House passes permanent increase to ag-friendly section 179
Rep. Kristi Noem today joined the U.S. House of Representatives in passing H.R.636, America’s Small Business Tax Relief Act. This legislation, which Noem helped advance through the Ways and Means Committee last week, increases Section 179 expensing limitations for small businesses and farms, among other things.
“As a lifelong farmer and rancher, I understand the importance of reasonable deduction levels for new equipment,” said Rep. Noem. “Increasing the Section 179 expensing limitations for small businesses and farms gives families more flexibility to invest in their operation. And I know the certainty of a permanent increase would be more than welcome too.”
H.R.6 36 increases deduction amounts under Section 179 of the tax code to $500,000, which maintains 2014 levels. On December 31, 2014, a temporary extension of the $500,000 expensing limitations expired, dropping the maximum amount to $25,000.
According to Representative Noem’s staff, The House has passed a permanent extension of Section 179 (with Rep. Noem’s support) a number of times throughout the congresswoman’s time in Congress, but it’s never made it past Harry Reid’s Senate. There is increased optimism that the Republican-led Senate may take it up, but the President has already threatened to veto the bill, should it arrive at his desk. Additionally, Democrats and Republicans were close to a permanent deal at the end of last year, but the President derailed it at the last minute.