The U.S. House passed a bill Friday backed by House Speaker John Boehner that would extend a tax deduction allowing small companies to deduct as much as $500,000 when they buy new equipment, such as computer software or property.
The bill, which must still pass the Senate and be signed by President Barack Obama before it can become law, would give small companies a boost because they could immediately deduct the new purchases rather than depreciating them over a number of years. The deduction would phase out when the purchases are more than $2 million.
The bill swept through the House by a vote of 272-to-142 as 33 Democrats joined 239 Republicans in supporting it. Local Republicans Mike Turner of Dayton, Jim Jordan of Urbana, Brad Wenstrup of Cincinnati and Steve Chabot of Cincinnati voted for the bill.
Boehner, R-West Chester Twp., said “having run a small business, I know how difficult it can be to grow and plan for the future when you can’t even predict your next tax bill.
“That’s why we’re taking steps to bring more certainty to the tax code and expand policies that make it easier for small business owners to access capital, reinvest, and do what we need them to do: help our economy grow and put more Americans back to work.”
In a floor speech before the vote, Columbus-area Rep. Tiberi, R-Genoa Twp. – the bill’s sponsor — said it was crucial to approve the bill because Obama and Congress have been unable to agree on a broader bill to overhaul the tax code to make it simpler.
“We have now been at trying to do comprehensive tax reform for five years, and we should continue to try to do it,” Tiberi said. “But our constituents shouldn’t be held hostage for the lack of the ability for us to get it across the finish line.”
Without congressional action, the deduction would fall to $25,000.