[Congressional Record Volume 152, Number 19 (Wednesday, February 15, 2006)]
[Senate]
[Page S1354]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. SNOWE (for herself and Mr. Lott):
  S. 2287. A bill to amend the Internal Revenue Code of 1986 to 
increase and permanently extend the expensing of certain depreciable 
business assets for small businesses; to the Committee on Finance.
  Ms. SNOWE. Mr. President, I rise today to introduce legislation that 
allows small businesses to expense more of their equipment and business 
assets, which will create incentives to invest in new technology, 
expand their operations, and most important, create jobs. Small 
businesses are the engine that drives our Nation's economy and I 
believe this bill strengthens their ability to lead the way. I am 
pleased to join my colleague from Mississippi, Senator Trent Lott, as 
we work to move this important initiative for small businesses from 
legislation to law.
  As the Chair of the Senate Committee on Small Business and 
Entrepreneurship, I drafted this bill in response to the repeated 
requests from small businesses in my State of Maine and from across the 
Nation to allow them to expense more of their investments like the 
purchase of essential new equipment. The bill modifies the Internal 
Revenue Code and would double the amount a small business can expense 
from $100,000 to $200,000, and make the provision permanent as 
President Bush also proposed this change in his fiscal year 2007 tax 
proposals. With small businesses representing 99 percent of all 
employers, creating 75 percent of net new jobs and contributing 51 
percent of private-sector output, their size is the only `small' aspect 
about them.
  By doubling and making permanent the current expensing limit and 
indexing these amounts for inflation, this bill will achieve two 
important objectives. First, qualifying businesses will be able to 
write off more of the equipment purchases today, instead of waiting 
five, seven or more years to recover their costs through depreciation. 
That represents substantial savings both in dollars and in the time 
small businesses would otherwise have to spend complying with complex 
and confusing depreciation rules. Moreover, new equipment will 
contribute to continued productivity growth in the business community, 
which economic experts have repeatedly stressed is essential to the 
long-term vitality of our economy.
  Second, as a result of this bill, more businesses will qualify for 
this benefit because the phase-out limit will be increased to $800,000 
in new assets purchases. At the same time, small business capital 
investment will be pumping more money into the economy. Accordingly, 
this is a win-win for small business and the economy as a whole.
  This legislation is a tremendous opportunity to help small 
enterprises succeed by providing an incentive for reinvestment and 
leaving them more of their earnings to do just that. I urge my 
colleagues to join me in supporting this vital legislation as we work 
with the President to enact this investment incentive into law.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2287

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. INCREASE AND PERMANENT EXTENSION FOR 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 ``$25,000 ($100,000 in the case of 
     taxable years beginning after 2002 and before 2008)'' and 
     inserting ``$200,000''.
       (b) Increase in Qualifying Investment at Which Phaseout 
     Begins.--Paragraph (2) of section 179(b) of such Code 
     (relating to reduction in limitation) is amended by striking 
     ``$200,000 ($400,000 in the case of taxable years beginning 
     after 2002 and before 2008)'' and inserting ``$800,000''.
       (c) Inflation Adjustments.--Section 179(b)(5)(A) of such 
     Code (relating to inflation adjustments) is amended--
       (1) in the matter preceding clause (i)--
       (A) by striking ``after 2003 and before 2008'' and 
     inserting ``after 2007'', and
       (B) by striking ``the $100,000 and $400,000 amounts'' and 
     inserting ``the $200,000 and $800,000 amounts'', and
       (2) in clause (ii), by striking ``calendar year 2002'' and 
     inserting ``calendar year 2006''.
       (d) Revocation of Election.--Section 179(c)(2) of such Code 
     (relating to election irrevocable) is amended to read as 
     follows:
       ``(2) Revocability of election.--Any election made under 
     this section, and any specification contained in any such 
     election, may be revoked by the taxpayer with respect to any 
     property, and such revocation, once made, shall be 
     irrevocable.''.
       (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 2008''.
       (f) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2006.
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