[Congressional Record Volume 147, Number 21 (Wednesday, February 14, 2001)]
[Extensions of Remarks]
[Page E179]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


INTRODUCTION OF A BILL TO STRENGTHEN AND IMPROVE THE BENEFITS PROVIDED 
      TO SMALL BUSINESSES UNDER INTERNAL REVENUE CODE SECTION 179

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                           HON. WALLY HERGER

                             of california

                    in the house of representatives

                      Wednesday, February 14, 2001

  Mr. HERGER. Mr. Speaker, today I introduce the ``Small Business 
Expensing Improvement Act of 2001,'' legislation to assist small 
businesses with the cost of new business investment. I am pleased to be 
joined in this effort by my colleague on the Ways and Means Committee, 
Mr. Tanner.
  Small businesses truly are the backbone of our economy, representing 
more than half of all jobs and economic output. We should not take 
small business vitality for granted, however. Rather, our tax laws 
should support small businesses in their role as the engines of 
innovation, growth, and job creation.
  The legislation we are introducing today will improve our tax laws to 
make it easier for small businesses to make the crucial investments in 
new equipment necessary for continued prosperity. Under Code Section 
179, a small business is allowed to expense the first $24,000 in new 
business investment in a year. Our legislation will increase this 
amount to $35,000, beginning in 2001. Furthermore, our bill will index 
this amount to ensure that the value of this provision is not eroded 
over time.
  This legislation will also allow more small businesses to take 
advantage of expensing by increasing from $200,000 to $300,000 the 
total amount a business may invest in a year and qualify for Section 
179. It is important to note that this amount has not been adjusted for 
inflation since its enacting into law in 1986.
  The ``Small Business Expensing Improvement Act'' also improves the 
small business expensing provision by following the recommendations of 
the IRS National Taxpayer Advocate in his 2000 Annual Report to 
Congress. Specifically, our legislation makes residential rental 
personal property and off-the-shelf computer software eligible for 
expensing under Section 179.
  Mr. Speaker, in times of economic uncertainty, we must do all we can 
to encourage new investment and job creation. The ``Small Business 
Expensing Improvement Act of 2001'' will help accomplish this worthy 
goal, and I urge my colleagues to join me in this effort.

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