HR354119th CongressWALLET

Small Business Growth Act

Sponsored By: Representative Moore, Blake D. [R-UT-1]

Introduced

Summary

Doubles the Section 179 expensing limit. This bill would raise the Section 179 expensing cap from $1 million to $2 million and increase the phase-out threshold from $2.5 million to $3.5 million, while altering the base years used for future inflation adjustments.

Show full summary
  • Small businesses that buy depreciable equipment could immediately deduct up to $2 million of qualifying purchases instead of $1 million. More firms will qualify for full expensing because the phase-out now begins at $3.5 million.
  • The bill moves the inflation-adjustment reference years by replacing calendar year 2018 with 2026 and calendar year 2017 with 2025. Tax preparers will use these new base years when projecting future Section 179 limits.
  • The change would apply to property placed in service in taxable years beginning after December 31, 2025.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

Bigger equipment write-offs for small businesses

If enacted, small businesses could immediately expense up to $2,000,000 of qualifying equipment under Section 179. The phase-out would start at $3,500,000 of property placed in service. These changes would apply to property placed in service in tax years beginning after December 31, 2025. The bill also updates the inflation indexing base years for future adjustments.

Sponsors & CoSponsors

Sponsor

Moore, Blake D. [R-UT-1]

UT • R

Cosponsors

  • Buchanan

    FL • R

    Sponsored 1/13/2025

  • Rep. Smith, Adrian [R-NE-3]

    NE • R

    Sponsored 1/13/2025

  • Rep. Smucker, Lloyd [R-PA-11]

    PA • R

    Sponsored 1/13/2025

  • Rep. Miller, Carol D. [R-WV-1]

    WV • R

    Sponsored 1/13/2025

  • Rep. Fitzpatrick, Brian K. [R-PA-1]

    PA • R

    Sponsored 1/13/2025

  • Rep. Tenney, Claudia [R-NY-24]

    NY • R

    Sponsored 1/13/2025

  • LaHood

    IL • R

    Sponsored 1/14/2025

  • Kelly (PA)

    PA • R

    Sponsored 1/14/2025

Roll Call Votes

No roll call votes available for this bill.

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