[Congressional Record (Bound Edition), Volume 148 (2002), Part 4]
[Extensions of Remarks]
[Pages 4936-4937]
[From the U.S. Government Publishing Office, www.gpo.gov]




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

                                 ______
                                 

                           HON. WALLY HERGER

                             of california

                    in the house of representatives

                       Wednesday, April 17, 2002

  Mr. HERGER. Mr. Speaker, I rise today to introduce the ``Small 
Business Expensing Improvement Act of 2002,'' legislation to assist 
small businesses with the cost of new business investment. I am pleased 
to be joined in this effort by Mr. Tanner, as well as several other of 
my colleagues on the 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.
  On March 19 of this year, President Bush unveiled his small business 
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 $24,000 in new business investment in a 
year. Our legislation will permanently increase this amount to $40,000. 
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 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 clarifies that residential 
rental personal property and off-the-shelf computer software qualify 
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 2002'' will help accomplish this worthy 
goal, and I urge my colleagues to join me in this effort.

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