[Congressional Record Volume 155, Number 176 (Tuesday, December 1, 2009)]
[Senate]
[Pages S12071-S12072]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. SNOWE (for herself and Ms. Landrieu):
  S. 2822. A bill to amend the Internal Revenue Code of 1986 to provide 
additional tax relief for small businesses, and for other purposes; to 
the Committee on Finance.
  Ms. SNOWE. Mr. President, I rise today, along with Senator Landrieu, 
to introduce legislation to make permanent a critical tax incentive 
currently being utilized by our Nation's small businesses, which will 
enable them to continue to make vital investments in new plant and 
equipment. The American Recovery and Reinvestment Act, ARRA, included a 
crucial provision that extended enhanced small business expensing at 
$250,000 through 2009. My legislation would make the incentive 
permanent and, in turn, provide valuable assistance to America's 26 
million small firms that represent over 99.7 percent of all employers.
  I have long championed enhanced section 179 expensing, which allows 
small businesses to elect to deduct the cost of qualifying property in 
the year it was purchased, rather than to recover such costs through 
depreciation deductions over a number of years. In 2007, I introduced 
legislation to make permanent section 179 expensing, and in 2008, 
Congress, as part of the Economic Stimulus Act of 2008, allowed small 
businesses in Maine and across the Nation to expense up to $250,000 of 
their investments, including the purchase of essential new equipment.
  Congress further reinforced the necessity of this legislation by 
extending the provision through 2009 in the ARRA. Unfortunately, the 
ARRA extension was written to last just 1 year, as a result, in 2010, 
absent additional action, small firms will be able to expense just 
$134,000 of new capital investment. The provision will be further 
reduced to $25,000 in 2011, and instead of being able to write off more 
of their equipment purchases immediately, firms will have to recover 
their costs over 5, 7, or more years.
  Small businesses continue to struggle as a result of the current 
recession, and many are having trouble finding capital to make job-
creating new investments. We simply cannot allow this pattern to 
continue, Accordingly, my bill would allow small businesses to continue 
expensing up to $250,000 of new investment permanently. By permitting 
small businesses to write off more of their equipment purchases today, 
they will retain substantial savings instead of waiting 5, 7, or more 
years to recover their costs through depreciation. Additionally, this 
will save them the vital time that is required to

[[Page S12072]]

comply with complex and confusing depreciation rules. Accordingly, this 
provision encourages stable investment in new equipment that will 
contribute to continued productivity and growth in the business 
community.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There begin no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2822

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

     SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE; TABLE OF 
                   CONTENTS.

       This Act may be cited as the ``Small Business Expensing 
     Permanency Act''.

     SEC. 2. PERMANENT INCREASE IN LIMITATIONS ON EXPENSING OF 
                   CERTAIN DEPRECIABLE BUSINESS ASSETS.

       (a) In General.--Subsection (b) of section 179 of the 
     Internal Revenue Code of 1986 (relating to limitations) is 
     amended--
       (1) by striking ``$25,000'' and all that follows in 
     paragraph (1) and inserting ``$250,000.'',
       (2) by striking``$200,000'' and all that follows in 
     paragraph (2) and inserting ``$800,000'',
       (3) by striking ``after 2007 and before 2011, the $120,000 
     and $500,000'' in paragraph (5)(A) and inserting ``after 
     2009, the $250,000 and the $800,000'',
       (4) by striking ``2006'' in paragraph (5)(A)(ii) and 
     inserting ``2008'', and
       (5) by striking paragraph (7).
       (b) Permanent Expensing of Computer Software.--Section 
     179(d)(1)(A)(ii) of the Internal Revenue Code of 1986 
     (defining section 179 property) is amended by striking ``and 
     before 2011''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2008.

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