[Congressional Record (Bound Edition), Volume 151 (2005), Part 4]
[Extensions of Remarks]
[Page 5438]
[From the U.S. Government Publishing Office, www.gpo.gov]




  INTRODUCING THE ``SMALL BUSINESS EXPENSING PERMANENCY ACT OF 2005''

                                 ______
                                 

                           HON. WALLY HERGER

                             of california

                    in the house of representatives

                        Thursday, March 17, 2005

  Mr. HERGER. Mr. Speaker, 2 years ago Congress, working together with 
President Bush, enacted into law the Jobs and Growth Tax Relief 
Reconciliation Act of 2003. Among other provisions, the law 
strengthened and expanded the expensing provisions afforded to small 
businesses under Section 179 of the Internal Revenue Code. As such, the 
law encouraged 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 2005'' to do just that.
  Specifically, the Jobs and Growth Act increased from $25,000 to 
$100,000 the amount of new investment a business can expense--or deduct 
from income--in a given year. The law also increased--from $200,000 to 
$400,000--the amount of total investment a business can make in a year 
and still qualify for expensing under Section 179. Unfortunately, under 
current law, these provisions are set to expire after 2007.
  My legislation will repeal the 2007 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 2005'' 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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