S. 1523

Small Business Expensing Permanency Act of 2005

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II

109th CONGRESS

1st Session

S. 1523

IN THE SENATE OF THE UNITED STATES

July 28, 2005

Ms. Snowe introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to make permanent increased expensing for small businesses.

1.

Short title

This Act may be cited as the Small Business Expensing Permanency Act of 2005.

2.

Increased expensing for small business made permanent

(a)

In general

Paragraph (1) of section 179(b) of the Internal Revenue Code of 1986 (relating to dollar limitation) is amended by striking $25,000 ($100,000 in the case of taxable years beginning after 2002 and before 2008) and inserting $100,000.

(b)

Increase in qualifying investment at which phaseout begins

Paragraph (2) of section 179(b) of such Code (relating to reduction in limitation) is amended by striking $200,000 ($400,000 in the case of taxable years beginning after 2002 and before 2008) and inserting $400,000.

(c)

Inflation adjustments

Section 179(b)(5)(A) of such Code (relating to inflation adjustments) is amended by striking and before 2008.

(d)

Revocation of election

Section 179(c)(2) of such Code (relating to election irrevocable) is amended by striking and before 2008.

(e)

Off-the-Shelf computer software

Section 179(d)(1)(A)(ii) of such Code (relating to section 179 property) is amended by striking and before 2008.

(f)

Effective date

The amendments made by this section shall take effect on the date of the enactment of this Act.