[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1388 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 1388

   To amend the Internal Revenue Code of 1986 to make permanent the 
increase in expensing of certain depreciable business assets enacted by 
the Jobs and Growth Tax Relief Reconciliation Act 2003 and extended by 
                the American Jobs Creation Act of 2004.


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                    IN THE HOUSE OF REPRESENTATIVES

                             March 17, 2005

  Mr. Herger introduced the following bill; which was referred to the 
                      Committee on Ways and Means

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                                 A BILL


 
   To amend the Internal Revenue Code of 1986 to make permanent the 
increase in expensing of certain depreciable business assets enacted by 
the Jobs and Growth Tax Relief Reconciliation Act 2003 and extended by 
                the American Jobs Creation Act of 2004.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

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

SEC. 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 
2006''.
    (d) Revocation of Election.--Section 179(c)(2) of such Code 
(relating to election irrevocable) is amended by striking ``and before 
2006''.
    (e) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.
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