South Dakota Stockgrowers Association applauded the U.S. House of Representatives for voting earlier this week to pass H.R.636, America’s Small Business Tax Relief Act. The bill includes a number of tax relief measures aimed at small businesses, including the increases to Section 179 deductions.
“The higher limits of deductions on Section 179 has been a great help to our ranch families who are investing in equipment and items that grow their operations,” said Bob Fortune, President of the SD Stockgrowers Association from Belvidere. “We really appreciate Representative Noem’s work to see this pass the House as a permanent increase.”
Section 179 of the tax code allows most small businesses to write-off the full purchase prices of qualifying equipment and software within the first year. In December of 2014, Congress passed a temporary extension to the Section 179 tax credits, raising allowed deductions from $25,000 for the 2014 calendar year. H.R. 636 increases deduction amounts under Section 179 of the tax code to $500,000 which maintains the 2014 levels.
“We really urge the Senate to take action on this provision soon to give our small businesses the confidence to make purchasing decisions in the future based on the certainty of having a permanent increase in Section 179,” said Fortune.
The bill will next move to the Senate for further consideration. Without the passage of similar legislation, Section 179 deductions for the calendar year 2015 are limited to $25,000.