[Congressional Record Volume 149, Number 97 (Friday, June 27, 2003)]
[Extensions of Remarks]
[Pages E1383-E1384]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  BILL TO MAKE PERMANENT THE EXPANDED EXPENSING BENEFITS PROVIDED TO 
 SMALL BUSINESSES UNDER THE JOBS AND GROWTH TAX RELIEF RECONCILIATION 
                              ACT OF 2003

                                 ______
                                 

                           HON. WALLY HERGER

                             of california

                    in the house of representatives

                        Thursday, June 26, 2003

  Mr. HERGER. Mr. Speaker, last year Congress, working together with 
President Bush, enacted into law the Jobs and Growth Tax Relief 
Reconciliation Act of 2003. Among other provisions, this new law 
strengthens and expands the expensing provisions afforded to small 
businesses under section 179 of the Internal Revenue Code. As such, the 
law encourages small businesses to make new capital investments, thus 
spurring our economy and creating jobs. I believe Congress should make 
this provision permanent and today I am introducing the ``Small 
Business Expensing Permanency Act of 2003'' to do just that.
  Specifically, the Jobs and Growth Act increases from $25,000 to 
$100,000 the amount of new investment a business can expense--or deduct 
from income--in a given year. The new law also increases--from $200,000 
to $400,000--the amount of total investment a business can make in a 
year and still qualify

[[Page E1384]]

for expensing under section 179. Unfortunately, under the new law, 
these provisions are set to expire after 2005.
  My legislation will repeal the 2005 sunset. If the higher expensing 
limits are good for our nation's small businesses over the next two 
years, they should be good for small businesses indefinitely.
  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.
  Mr. Speaker, in difficult economic times, we must do all we can to 
encourage new investment and job creation by creating certainty and 
predictability for America's small business owners. The ``Small 
Business Expensing Permanency Act of 2003'' will help accomplish this 
worthy goal. I applaud the administration for its consistent leadership 
on this issue, and I look forward to working with my colleagues to 
enact this much-needed legislation.

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