The House is set to vote on a measure this Friday to permit small businesses to expense capital investments of up to $500,000, rather than depreciating the purchases over a number of years—a provision supported by business aviation groups. America’s Small Business Tax Relief Act of 2015, H.R.636, would make permanent the increase in the Section 179 small business expensing limits.
The small business expensing provision had been included in previous tax extender bills, most recently extended through 2014. NATA president and CEO Tom Hendricks has called it an important incentive for investment. “Provisions like these make a difference,” he said when Congress approved a temporary extension. NBAA president and CEO Ed Bolen had similarly endorsed the extension.
The fate of H.R.636, however, is uncertain. The House Ways and Means Committee cleared the measure on February 4 by a 24-14 vote along party lines. Committee Democrats oppose passage of measures like small business expensing on a piecemeal basis rather than as part of more comprehensive tax reform. They also object to its passage without a revenue raiser that offsets the costs to the government. The White House similarly has objected to approving the tax breaks on a piecemeal basis.