MADISON (December 17, 2015) – Small businesses in Wisconsin will no longer have to wait until the last minute every year to understand the tax consequences of whether to invest in new equipment, technology or capital upgrades under a bipartisan deal unveiled late Tuesday night with the support of Senator Johnson, and according to the National Federation of Independent Business (NFIB) the result is likely to be more jobs and a stronger economy.
“As a former small business owner himself, Senator Johnson went to Capitol Hill with firsthand knowledge of the struggles that are faced when owning and operating a small business in Wisconsin. We are so grateful that he stood with NFIB today to discuss the importance of permanently extending 179 as an important step in increasing fiscal predictability for the small business sector,” according to Bill G. Smith, NFIB Wisconsin state director. “Making 179 permanent will produce great economic benefits for our state’s largest employer, small business, and Senator Johnson’s voice in the Senate has unequivocally aided in the extension being part of this week’s budget action.”
NFIB has pushed for several years to make section 179 of the IRS Tax Code permanent. Under that provision, businesses can expense up to $500,000 of new investment in heavy machinery, office equipment, computer technology or many other big-ticket items that they need. Small business expensing has been a feature of the tax code for decades as a way to encourage investment and growth. When the Bush tax cuts expired, however, the amount that small firms can expense dropped down to $25,000 and expires every year unless Congress extends it.
With a bipartisan deal to make expensing permanent passing through Congress, small businesses will be finally able to plan out their investments. The tax package will be a key vote for NFIB in the House and Senate.
“The tax benefit encourages businesses to make big investments and the permanency creates predictability, something small businesses in Wisconsin have been longing for,” said Smith. “NFIB’s research predicts that nationally we will see hundreds of thousands of new jobs as a result.”