U.S. Senator Bob Casey, D-Pennsylvania, was in Lancaster Friday to promote a bill he says will help grow small business jobs.
Sen. Casey was joined by a group of business leaders at the soon-to-be opened Federal Taphouse in downtown Lancaster.
Casey said his bill includes three permanent changes to the tax code that would keep more money in the pockets of small business owners to allow them to expand and hire.
“If they have more, more economic vitality or more capital in a particular year, they’re likely to expand, which could lead to more job growth,” he said.
Casey and his co-sponsor, Senator Susan Collins, R-Maine, introduced the bill earlier this month. It now heads to the Senate Finance Committee for consideration.
Here’s a statement from Sen. Casey’s office about the bill:
Lancaster PA- Today, U.S. Senator Bob Casey (D-PA) pushed for passage of his new, bipartisan small business jobs bill. At the Federal Taphouse, Senator Casey was joined by businesses leaders from throughout the region and highlighted the role that his legislation can play in helping businesses grow and create jobs. Casey’s bill is coauthored by Senator Susan Collins (R-ME).
“This legislation will provide businesses in South Central Pennsylvania with the certainty they need to create jobs and continuing growing our economy,” Senator Casey said. “This commonsense legislation contains ideas that both parties have supported in past. The bill helps the backbone of our economy- small businesses. I’ll be pushing to get this bill to the President’s desk this year.
The Small Business Tax Certainty and Growth Act would provide small businesses with the certainty they need to make long-range investment plans by making permanent the maximum allowable deduction under Section 179 of the Internal Revenue Code. Section 179 allows small businesses to more rapidly deduct the cost of acquired assets. The amount of the maximum allowable deduction has changed three times in the past six years, and is usually addressed as a year-end “extender,” making this tax benefit unpredictable from year to year, and therefore difficult for small businesses to take full advantage of in their long-range planning.
This bill would permanently set the maximum allowable deduction at $250,000, indexed for inflation, and ensure that only small businesses can avail themselves of the benefit by phasing it out as acquisitions exceed $800,000. The bill further encourages capital investment by extending, for one year, provisions that benefit businesses of all sizes: “bonus depreciation” and 15-year depreciation for improvements with respect to restaurants, retail facilities and leaseholds.
The bill also allows more companies to use the simpler cash method of accounting by permanently doubling the threshold at which the accrual method is required, from $5 million in gross receipts to $10 million, indexed for inflation. The bill also expands the ability to use more simplified methods of accounting for inventories, reducing complexity for small businesses that produce goods.
Finally, the bill would permanently double the deduction for business start-up expenses from $5,000 to $10,000. This would help ease the tax burden on new businesses. This provision is targeted to provide a benefit only to small businesses by phasing out the deduction as start-up expenses exceed $60,000.