110 HR 1797 IH: Small Business Expensing Expansion and U.S. House of Representatives 2007-03-29 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 110th CONGRESS 1st Session H. R. 1797 IN THE HOUSE OF REPRESENTATIVES March 29, 2007 Mr. Herger (for himself, Mr. Brady of Texas, Mr. English of Pennsylvania, and Mrs. Musgrave) 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 expand expensing for small business.

1.

Short title

This Act may be cited as the Small Business Expensing Expansion and Permanency Act of 2007.

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 2010) and inserting $200,000. (b)

Phaseout of limitation only by 50 percent of excess over $800,000

Paragraph (2) of section 179(b) of such Code (relating to reduction in limitation) is amended to read as follows: (2)

Reduction in limitation

The limitation under paragraph (1) for any taxable year shall be reduced (but not below zero) by one-half of the amount by which the cost of section 179 property placed in service during such taxable year exceeds $800,000. . (c)

Rebasing of inflation adjustments

Section 179(b)(5)(A) of such Code (relating to inflation adjustments) is amended— (1)in the matter preceding clause (i) by striking 2003 and before 2010, the $100,000 and $400,000 and inserting 2007, the $200,000 and $800,000, and (2)in clause (ii) by striking calendar year 2002 and inserting calendar year 2006. (d)

Revocation of election made permanent

Section 179(c)(2) of such Code (relating to election irrevocable) is amended by striking and before 2010. (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 2010. (f)

Effective date

The amendments made by this section shall apply to property placed in service in taxable years beginning after December 31, 2006.