One of the key provisions of Moore’s proposal is to double the income tax deduction for equipment purchases from $1 million to $2 million
The proposed legislation, known as the Small Business Growth Act, aims to assist small businesses by facilitating the acquisition of necessary equipment and the expansion of their workforce. The intention behind this move is to demonstrate support for small businesses and create an environment that encourages innovation, job creation, and sustainable growth. Currently, Section 179 of the Internal Revenue Code permits small businesses to deduct the entire purchase price of qualifying equipment. The Tax Cuts and Jobs Act of 2017 raised the deduction cap for such investments from $500,000 to $1 million, benefiting small businesses in their efforts to enhance their operations.
The Small Business Growth Act builds on the success of the previous legislation by further increasing the deduction cap to $2 million. Additionally, it introduces a phase-out threshold of $3.5 million. By implementing these changes, Moore’s proposal aims to reduce the tax burden on business owners who are investing in equipment such as farming machinery, office furniture, manufacturing tools, commercial vehicles, and more.
The enhanced tax deduction will allow businesses to allocate additional funds to employee salaries, materials, and other critical expenditures
Representative Moore emphasizes that in today’s increasingly competitive global market, the Small Business Growth Act strives to promote innovation, workforce development, and economic expansion. He has garnered support for the bill from various like-minded colleagues in the House, including Representatives Adrian Smith, Mike Kelly, Drew Ferguson, David Kustoff, Brian Fitzpatrick, Claudia Tenney, Michelle Fischbach, Michelle Steel, and Randy Feenstra. Additionally, more than 30 business advocacy groups from Utah and across the country have expressed their support for the proposed legislation.
Moore envisions that his Small Business Growth Act will ensure the continued competitiveness and prosperity of American small businesses in an ever-evolving global economy.