110 HR 5085 IH: Small Business Expensing Temporary U.S. House of Representatives 2008-01-22 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 2d Session H. R. 5085 IN THE HOUSE OF REPRESENTATIVES January 22, 2008 Mr. Herger 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 Temporary Expansion Act of 2008.

2.

Increase in expensing for small business

(a)

In general

Paragraph (1) of section 179(b) of the Internal Revenue Code of 1986 (relating to dollar limitation) is amended by striking $125,000 in the case of taxable years beginning after 2006 and before 2011 and inserting $500,000 in the case of taxable years beginning after 2007 and before 2011. (b)

Phaseout of Limitation Only by 50 Percent of Excess Over $2,000,000

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 the amount (one-half of such amount in the case of taxable years beginning after 2007 and before 2011) by which the cost of section 179 property placed in service during such taxable year exceeds $200,000 ($2,000,000 in the case of taxable years beginning after 2007 and before 2011). . (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 2007 and before 2011, the $125,000 and $500,000 and inserting 2008 and before 2011, the $500,000 and $2,000,000, and (2)in clause (ii) by striking calendar year 2006 and inserting calendar year 2007. (d)

Effective date

The amendments made by this section shall apply to property placed in service in taxable years beginning after December 31, 2007.