House Committee Approves Permanent
Higher Section 179 Expensing Levels

The House Ways and Means Committee in February approved a slate of bills to reform the tax code, including one bill that would make higher section 179 expensing levels permanent, reported FarmFutures.com.

The bill, H.R. 636, America’s Small Business Tax Relief Act of 2015, makes higher section 179 expensing levels experienced through the 2010-2014 tax years permanent. This will allow farmers, ranchers and small business owners to deduct up to $500,000 in qualifying expenses, with a phase-out threshold of $2 million.

With higher expensing levels, farmers and ranchers can more easily justify needed investments in machinery.

Last December, lawmakers approved a host of tax extenders that skirted the change for only the 2014 tax year. Starting Jan. 1, 2015, the expensing levels again dropped to $25,000 with a $200,000 phase-out.

These levels will not be changed unless lawmakers again approve legislation such as H.R. 636 to make the higher levels permanent or a bill to extend the higher levels for a length of time, as was approved last year.