Schumer Announces Just-Unveiled Tax Package Would Boost Incentive for Small Biz & Family Farmers to Purchsae Equipment; Tax Benefit that Allows Them to Recover Up-Front Costs of Expensive Equipment Would be Made Permanent

Press Release

U.S. Senator Charles E. Schumer today announced the just-unveiled tax package would make important tax benefits for small businesses and farmers a permanent part of the tax code. As a part of the Protecting American From Tax Hikes Act of 2015, Schumer secured the restoration and permanent extension of key provisions of Section 179 of the tax code. Section 179 tax deductions help family farmers and small businesses purchase expensive new or used equipment to invest in their businesses. The 179 expansions included in the Protecting American From Tax Hikes Act of 2015 would permanently increase the 2014 expensing limit for a single purchase to $500,000 and increase the annual phase-out threshold to $2,000,000, up from current limits of $25,000 and $500,000 respectively. This year, Schumer pushed for adjustments to both Section 179 and 168 of the tax code to help famers and small business who are having difficulty financing large equipment purchases. Schumer pushed to amend Sec. 168 of the tax code to allow farmers to recover the cost of depreciating farm equipment over 5 years instead of 7. While this adjustment was not considered in the "tax extenders" package, Schumer secured the permanent expansion of expensing limits for the Sec. 179 tax deduction, which would be an even bigger boon for farmers and small businesses.

"Farmers and small businesses throughout Upstate NY need consistent tax incentives to allow them to purchase the critical equipment needed for their businesses to operate and grow. Allowing them to take advantage of the expanded 179 benefit -- and on a permanent basis -- would be good for business. That is why I am urging my colleagues on both sides of the aisle and in both chambers of Congress to vote for this bill so we can send this to the President's desk. Providing business and farmers with a fair and consistent tax benefit for purchasing expensive equipment provides vital support for our hard-working farmers across New York and supports the entire Upstate economy," said Schumer.

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