To amend the Internal Revenue Code of 1986 to make permanent the increase in expensing of certain depreciable business assets enacted by the Jobs and Growth Tax Relief Reconciliation Act 2003.

June 26, 2003

Mr. HERGER introduced the following bill; which was referred to the Committee on Ways and Means

To amend the Internal Revenue Code of 1986 to make permanent the increase in expensing of certain depreciable business assets enacted by the Jobs and Growth Tax Relief Reconciliation Act 2003.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Small Business Expensing Permanency Act of 2003'.

SEC. 2. INCREASED EXPENSING FOR SMALL BUSINESS MADE PERMANENT.

(a) IN GENERAL- Paragraph (1) of section 179(b) of the Internal Revenue Code of 1986 (relating to dollar limitation) is amended by striking `$25,000 ($100,000 in the case of taxable years beginning after 2002 and before 2006)' and inserting `$100,000'.

(b) INCREASE IN QUALIFYING INVESTMENT AT WHICH PHASEOUT BEGINS- Paragraph (2) of section 179(b) of such Code (relating to reduction in limitation) is amended by striking `$200,000 ($400,000 in the case of taxable years beginning after 2002 and before 2006)' and inserting `$400,000'.

(c) INFLATION ADJUSTMENTS- Section 179(b)(5)(A) of such Code (relating to inflation adjustments) is amended by striking `and before 2006'.

(d) REVOCATION OF ELECTION- Section 179(c)(2) of such Code (relating to election irrevocable) is amended by striking `and before 2006'.

(e) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years beginning after December 31, 2002.

END