Bill > HR354

This bill proposes amendments to the Internal Revenue Code to increase the limitations on expensing depreciable business assets, specifically Section 179, which allows small businesses to deduct the full purchase price of qualifying equipment and software purchased or financed during the tax year. Under the proposed changes, the maximum deduction would increase from $1,000,000 to $2,000,000, and the phase-out threshold would be raised from $2,500,000 to $3,500,000. The bill also updates the inflation adjustment provisions, extending the reference year from 2018 to 2026 and from calendar year 2017 to calendar year 2025. These modifications are designed to provide small businesses with greater tax relief by allowing them to write off more of their capital investments immediately, which can help stimulate business growth and investment. The amendments would take effect for property placed in service in taxable years beginning after December 31, 2025, giving businesses advance notice of the upcoming tax code changes.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/354/all-info