Bill 119 HR 354, also known as the "Expensing for Small Businesses Act," aims to make changes to the Internal Revenue Code of 1986 in order to increase the limitations on expensing of depreciable business assets.
The bill proposes to allow small businesses to deduct a larger portion of the cost of certain assets in the year they are purchased, rather than having to spread out the deduction over several years. This would provide small businesses with immediate tax relief and help stimulate economic growth.
Specifically, the bill would raise the current limitation on expensing of depreciable business assets from $1 million to $5 million. This means that small businesses would be able to deduct up to $5 million in qualifying assets in the year they are purchased, rather than having to depreciate them over time.
Proponents of the bill argue that this change would incentivize small businesses to invest in new equipment and technology, leading to increased productivity and job creation. However, critics are concerned about the potential impact on government revenue and the overall fairness of the tax code.
Overall, Bill 119 HR 354 seeks to provide small businesses with additional tax relief and support their growth and success in the current economic climate.