A $73.1 billion tax reduction bill passed by the U.S. House of Representatives June 12 would allow small businesses to write-off capital purchases more quickly, Bloomberg reported. The House voted to revive the provision that lapsed at the close of 2013; the White House, however, opposes the bill.
Currently, businesses can get immediate write-offs on purchases up to $25,000 with the benefit phasing out for companies with more than $200,000 in capital purchases. The new bill, which would have no expiration date, would raise those figures to $500,000 and $2 million, respectively. It also would make it easier to write-off spending on real property, heating and air conditioning and off-the-shelf software.
President Obama said he likely would veto the bill.
“Republicans are imposing a double standard by adding to the deficit to fund tax breaks for businesses while insisting on offsetting the cost of measures that help middle-class and working Americans,” the White House said in a policy statement June 10, Bloomberg reported.
Congress is looking at how to revive a number of tax breaks that expired at the end of 2013, although they may not come to any consensus until after the mid-term elections in November.
According to Bloomberg, House Republicans want to make many individual write-offs permanent features of the tax code, while Senate Democrats want to extend almost all tax write-offs through 2015.
The House also passed a bill to make it easier for S corporations to sell certain assets to make charitable contributions. That bill would add $2.1 billion to the budget deficit over the next 10 years, Bloomberg reported.