Hoeven: Year-End Funding Legislation Permanently Extends Sec. 179 Expensing for Farmers, Ranchers, Small Businesses

Press Release

Senator John Hoeven today announced that the year-end funding bill for Fiscal Year 2016 permanently extends Section 179 with the $500,000 limitation, a provision of the Internal Revenue Service (IRS) tax code that allows farmers, ranchers and other small businesses to expense the purchase of equipment they need to run their operations. In addition, the measure extends the bonus depreciation allowance for five years.

Section 179 allows small businesses the option of expensing the costs of qualified equipment and other property up-front, which may reduce the businesses' administrative burden and be preferable to depreciating the items over time.

"Section 179 and bonus depreciation are important provisions that encourage our state's small businesses, farmers and ranchers to invest in their operations and acquire the equipment they need," Hoeven said. "Further, these sections of the tax code help ensure our small businesses have cash on hand, both for future investments and as reserves to get them through tough times. By making Section 179 permanent, we are providing greater flexibility and certainty for our businesses as they make their long-term plans."

BREAK IN TRANSCRIPT

Source