Proposed tax cut would ease small business equipment costs
A new proposed tax cut would allow business owners to deduct 50 percent of the cost of a new equipment purchase made through the end of the year.
“This tax cut provides a double benefit by creating an opportunity for small businesses to purchase new equipment while also helping the companies that manufacture and sell equipment to small businesses,” Montana Democrat Max Baucus said in a statement.
This kind of tax break- called bonus depreciation – can make it easier for companies to purchase the equipment they need to start a corporation.
An identical tax cut had been in place in 2009 – after being included in the federal stimulus bill – but it expired at the end of the year. The measure also has bipartisan support on the Senate finance committee from Baucus and Iowa Republican Charles Grassley.
The tax cut is expected to be added to the much larger small business legislation. Lawmakers in the house passed their own small business bill last week. Reuters expects that the Senate will continue its work on the bill over the next couple of weeks.