Today, Congressman Blake Moore (UT-01) introduced legislation to support small business growth and help small businesses attain the equipment necessary to build their operations and bolster their workforce.
Currently, Section 179 of the Internal Revenue Code allows small businesses to deduct the full purchase price of qualifying equipment. Under the 2017 Tax Cuts and Jobs Act, the deduction cap was lifted to $1 million from $500,000, which helped small business get the equipment they needed to expand their operations. The Small Business Growth Act will build on this success by lifting the deduction cap to $2 million with a phase-out threshold of $3.5 million. This measure will reduce tax bills for business owners who are working hard to purchase equipment—including farming equipment, office furniture, manufacturing tools, machinery, commercial vehicles, and more—and allow funds to go toward employee salaries, materials, and other critical business expenditures. In an increasingly competitive global marketplace, this legislation seeks to boost innovation, workforce development, and economic growth.
“The Small Business Growth Act reaffirms our belief in the power of small businesses,” said Congressman Blake Moore. “By increasing the cap on tax deductions for business investments under Section 179, we are setting the stage to supercharge innovation, job creation, and sustainable growth for our small businesses. This legislation will keep our small businesses competitive and thriving in an ever-evolving and competitive global market.”
“The Ways and Means Committee has spent the last several months visiting communities around the country to hear directly from Americans who are struggling in the Biden economy. Workers and small businesses have spoken overwhelmingly about how Washington needs to embrace policies that make it easier to hire, grow, and compete in today’s economy,” said Ways and Means Chairman Jason Smith. “The Small Business Growth Act will not only jumpstart small business investment and innovation but also support workers through more hiring and development. Rep. Moore’s bill is a critical part of fighting for workers and job creators by addressing specific ideas they shared with the Committee about how to make life easier for small businesses and farmers looking to compete against large corporations and foreign competitors.”
In addition to support from Representatives Adrian Smith (NE-03), Mike Kelly (PA-16), Drew Ferguson (GA-03), David Kustoff (TN-08), Brian Fitzpatrick (PA-01), Claudia Tenney (NY-24), Michelle Fischbach (MN-07), Michelle Steel (CA-45), and Randy Feenstra (IA-04), the bill is supported by the following groups in Utah and across the nation:
Utah Farm Bureau Federation, Utah Retail Merchants Association, Utah Restaurant Association, Utah Tourism Industry Association, New Car Dealers of Utah, Associated General Contractors of Utah, Utah Bankers Association, Utah Trucking Association, Utah Food Industry Association, NABIP-UT, Utah Association of Home Builders, Box Elder Chamber of Commerce, Cache Valley Chamber of Commerce, Park City Chamber of Commerce, Salt Lake Chamber, Ogden Weber Chamber of Commerce, Bear Lake Chamber of Commerce, Utah Credit Union Association, National Restaurant Association, NFIB: Small Business Association, Associated General Contractors of America, American Hotel & Lodging Association, Associated Builders and Contractors, National Roofing Contractors Association, American Mold Builders Association, Forging Industry Association, National Tooling and Machining Association, North American Die Casting Association, Precision Machined Products Association, Utah Association of CPAs, and Precision Metalforming Association.
The bill text can be found here.