Griffin Votes to Provide Certainty to Small Businesses
Press Release
Congressman Tim Griffin (AR-02), a member of the Ways and Means Committee, released the following statement after the House passed two bills to permanently extend tax provisions and provide tax relief to small businesses:
"The strength and stability of our economy hinges on America's small businesses, which employ half of the nation's private-sector workers. However, the ability of small businesses to grow and hire employees is hindered by our broken tax code and its exceedingly high compliance costs. Temporary provisions are a large part of why our tax code is so complex. These bills to permanently extend provisions that have been around for decades will provide our small businesses with much-needed certainty and permanent tax relief, expand opportunities and grow good-paying jobs in Arkansas and across our nation."
Rep. Griffin is an original cosponsor of H.R. 4457, the America's Small Business Tax Relief Act, which permanently allows small businesses to deduct up front the cost of purchasing new equipment and property. It provides that Internal Revenue Code section 179 expensing will be made permanent at the 2013 levels. Taxpayers will be able to expense up to $500,000 of investments in new equipment and property per year, with the deduction phased out for investments exceeding $2,000,000 (with both amounts indexed for inflation). The bill also restores and makes permanent rules allowing computer software and certain investments in real property to qualify for section 179 expensing, subject to the overall expensing limit. Finally, the bill will allow investments in air conditioning and heating units to qualify for section 179 expensing. The bill is effective for tax years beginning after 2013.
H.R. 4453, the Permanent S Corporation Built-in Gains Recognition Period Act of 2014, amends the Internal Revenue Code to reduce from 10 to 5 years the period during which the built-in gains of an S corporation -- a corporation that elects to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes -- are subject to tax and to make such reduction permanent.
Source