S. 2609 – Small Business Growth Act

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Updated January 20, 2026 at 10:39 AM UTC

The Small Business Growth Act amends the Internal Revenue Code to raise the dollar limits for the Section 179 expensing election. It increases the maximum amount a business can immediately expense from $1 million to $2.5 million and raises the phase‑out threshold from $2.5 million to $4 million. The changes also update inflation‑adjustment references and apply to property placed in service after December 31, 2023, affecting small businesses and other taxpayers that use Section 179.

Key Provisions

Increase the Section 179 expense limit from $1 million to $2.5 million
Increase the Section 179 phase‑out threshold from $2.5 million to $4 million
Update inflation‑adjustment year references to 2024 (for dollar amounts) and 2023 (for calendar year)
Effective for property placed in service in taxable years beginning after December 31, 2023

Legislative Activity

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1 earlier action

SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

Finance Committee

July 27, 2023

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SenateIntro Referral

Introduced in Senate

July 27, 2023

SenateIntro Referral

Read twice and referred to the Committee on Finance.

Finance Committee

July 27, 2023

Bill Text

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Introduced in SenateIssued July 27, 2023

II

118th CONGRESS

1st Session

S. 2609

IN THE SENATE OF THE UNITED STATES

July 27, 2023

Mr. Barrasso (for himself, Mr. Lankford, Mrs. Blackburn, Mr. Tillis, Mr. Braun, Mr. Risch, and Mr. Cramer) 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 increase the dollar limitation for the election to expense certain 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 $2,500,000, and

(2)

by striking $2,500,000 in paragraph (2) and inserting $4,000,000.

(b)

Inflation adjustment

Section 179(b)(6)(A) 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 in clause (ii) thereof and inserting calendar year 2023 (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.