Bill > S1688

This bill, called the "Growing America's Small Businesses and Manufacturing Act," proposes two key changes to the Internal Revenue Code that aim to support small businesses and manufacturing. First, the bill permanently extends a tax provision that allows businesses to include depreciation, amortization, or depletion when calculating the limitation on business interest deductions, removing the previous sunset date of January 1, 2022, and making this change applicable to tax years starting after December 31, 2024. Second, the bill increases the limits on expensing depreciable business assets under Section 179, raising the maximum deduction from $1 million to $2.5 million and increasing the phase-out threshold from $2.5 million to $4 million. The bill also updates the inflation adjustment provisions to reference the year 2025 instead of 2018 and adjusts the calendar year reference for calculation purposes. These changes are designed to provide more financial flexibility and tax relief for small businesses by allowing them to deduct more of their capital asset investments and equipment purchases in the year they are made.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/1688/all-info