US House Votes to Increase Sec. 179 Limits

US CapitolThe House voted 272-144 to revive Sec. 179 provisions that lapsed at the end of 2013. The new measure would have no expiration date.

Current Sec. 179 Law

Under current law, businesses can get immediate write-offs, without spreading deductions over several years, on purchases of up to $25,000. The benefit is phased out for companies with more than $200,000 in capital purchases.

Amounts Raised

The bill would raise those amounts to $500,000 and $2 million, the levels in place in 2013, and would index them to rise with the inflation rate. However, President Obama has indicated he would veto the bill if there are not offsetting increases. Most tax observers believe a final deal on the expired provisions won’t be struck until after November’s elections.  Auto Care News/The Hill.

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