[Congressional Record Volume 149, Number 2 (Wednesday, January 8, 2003)]
[Extensions of Remarks]
[Page E28]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




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

                                 ______
                                 

                           HON. WALLY HERGER

                             of california

                    in the house of representatives

                        Tuesday, January 7, 2003

  Mr. HERGER. Mr. Speaker, I rise today to join with President Bush in 
his call to assist our Nation's small businesses by introducing the 
``Small Business Expensing Improvement Act of 2003.'' This legislation 
will encourage new business investment and expansion, and I am pleased 
to be joined in this effort by several of my colleagues on the tax-
writing Ways and Means Committee.
  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.
  Earlier today, President Bush unveiled his economic growth proposal. 
I applaud the President for his commitment to our Nation's small 
business owners and his dedication to ensure that our tax laws do not 
impede the growth and development of small businesses. The legislation 
we are introducing today will implement a key element of the 
President's plan, expansion of the benefits available to small 
businesses under Internal Revenue Code Section 179.
  Our bill 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 $25,000 in new business investment in a 
year. Following the President's lead, our legislation will permanently 
increase this amount to $75,000. 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 $325,000 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 the provision was enacted into law in 1986.
  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 2003'' will help accomplish this worthy 
goal. I applaud President Bush for his leadership on this issue, and I 
look forward to working with my colleagues to enact this much-needed 
legislation.

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