H.R. 3661 – Small Business Growth Act

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Updated January 20, 2026 at 8:09 AM UTC

The Small Business Growth Act amends the Internal Revenue Code to raise the amount small businesses can immediately expense for qualifying equipment under Section 179. It doubles the maximum expensing limit and raises the phase‑out threshold, updating inflation references, and applies to assets placed in service after 2023.

Key Provisions

Increases the Section 179 maximum expensing limit from $1,000,000 to $2,000,000.
Raises the phase‑out threshold from $2,500,000 to $3,500,000.
Updates the inflation‑adjustment year to 2024 for the dollar amount and calendar year references.
Effective for property placed in service in taxable years beginning after December 31, 2023.

Legislative Activity

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1 earlier action

HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

May 25, 2023

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HouseIntro Referral

Introduced in House

May 25, 2023

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

May 25, 2023

Bill Text

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Introduced in HouseIssued May 25, 2023

I

118th CONGRESS

1st Session

H. R. 3661

IN THE HOUSE OF REPRESENTATIVES

May 25, 2023

Mr. Moore of Utah (for himself, Mr. Fitzpatrick, Mrs. Steel, Mr. Smith of Nebraska, Mrs. Fischbach, Mr. Kelly of Pennsylvania, Mr. Kustoff, Ms. Tenney, Mr. Ferguson, Mr. Feenstra, and Mr. Buchanan) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to increase the limitations on expensing of depreciable business assets.

1.

Short title

This Act may be cited as the Small Business Growth Act.

2.

Increase in limitations on expensing of depreciable business assets

(a)

In general

Section 179(b) of the Internal Revenue Code of 1986 is amended—

(1)

by striking $1,000,000 in paragraph (1) and inserting $2,000,000, and

(2)

by striking $2,500,000 in paragraph (2) and inserting $3,500,000.

(b)

Inflation adjustment

Section 179(b)(6) of such Code is amended—

(1)

by striking 2018 and inserting 2024 (2018 in the case of the dollar amount in paragraph (5)(A)), and

(2)

by striking calendar year 2017 and inserting calendar year 2024 (calendar year 2017 in the case of the dollar amount in paragraph (5)(A)).

(c)

Effective date

The amendments made by this section shall apply to property placed in service in taxable years beginning after December 31, 2023.