Small Business Expensing Allowance: Current Law, Legislative Proposals in the 112th Congress, and Economic Effects

Expensing is the most accelerated form of depreciation for tax purposes. Section 179 of the Internal Revenue Code (IRC) allows taxpayers to expense (or deduct as a current expense rather than a capital expense) up to $500,000 of the total cost of new and used qualified depreciable assets they buy and place in service in 2011, within certain limits. The allowance begins to phase out, dollar for dollar, when a taxpayer's total spending on qualified assets surpasses $2,000,000. This means that the taxpayer may expense none of the cost of qualified investments when total expenditures exceeds $2,500,000 in 2011. This report examines the current status, legislative history, and salient economic effects of the allowance. It also discusses initiatives in the 112th Congress to modify it. The report will be updated as legislative activity warrants. Bills: H.R. 1773, S. 727


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#	File Name	Document Date	Order ID:	Number of Pages	Price
1	RL31852_12_19_2011.pdf	Nov 01, 2011	RL31852	16	$29.95	Add to Cart

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