S. 1688 – Growing America’s Small Businesses and Manufacturing Act

AI-Generated Summary

Updated November 24, 2025 at 12:42 AM UTC

The Growing America’s Small Businesses and Manufacturing Act changes the tax code to give businesses a permanent, larger allowance for depreciation, amortization, and depletion when figuring the business‑interest deduction. It also boosts the amount small businesses can immediately expense under Section 179, raising the limits to $2.5 million and $4 million. These changes take effect for tax years beginning after December 31, 2024 and are aimed at helping small firms and manufacturers reduce their tax burden.

Key Provisions

Removes the temporary date limit on the depreciation, amortization, or depletion allowance used to calculate the business‑interest deduction, making the rule permanent for tax years starting after Dec. 31, 2024.
Raises the Section 179 expensing caps: the maximum amount a business can immediately expense rises from $1 million to $2.5 million, and the phase‑out threshold increases from $2.5 million to $4 million.
Updates the inflation‑adjustment references in Section 179 to use 2025 (or 2024 for the calendar‑year reference) and applies these changes to property placed in service after Dec. 31, 2024.

Legislative Activity

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1 earlier action

SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance. (text: CR S2841)

Finance Committee

May 8, 2025

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SenateIntro Referral

Introduced in Senate

May 8, 2025

SenateIntro Referral

Read twice and referred to the Committee on Finance. (text: CR S2841)

Finance Committee

May 8, 2025

Floor Debate

2 members

What members said about S. 1688 on the floor

1 Republican1 Democrat

Sen. Richard J. DurbinD-IL · May 8, 2025

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Sen. John BarrassoR-WY · May 8, 2025

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Bill Text

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Introduced in SenateIssued May 8, 2025

II

119th CONGRESS

1st Session

S. 1688

IN THE SENATE OF THE UNITED STATES

May 8, 2025

Mr. Barrasso (for himself, Mrs. Capito, Mrs. Blackburn, Mr. Lankford, Mr. Daines, Mr. Young, Mrs. Britt, Mr. Ricketts, Mr. Tuberville, Mr. Sheehy, Mr. Hoeven, and Mr. Cruz) 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 permanently extend the allowance for depreciation, amortization, or depletion for purposes of determining the income limitation on the deduction for business interest, and for other purposes.

1.

Short title

This Act may be cited as the Growing America’s Small Businesses and Manufacturing Act.

2.

Permanent extension of allowance for depreciation, amortization, or depletion in determining the limitation on business interest

(a)

In general

Section 163(j)(8)(A)(v) of the Internal Revenue Code of 1986 is amended by striking in the case of taxable years beginning before January 1, 2022,.

(b)

Effective date

The amendment made by this section shall apply to taxable years beginning after December 31, 2024.

3.

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 2025 (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 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, 2024.