Yoho Votes to Bring Tax Certainty to Small Businesses

Washington, D.C. - Congressman Ted S. Yoho (R-FL-03), a former small business owner, voted in favor of HR 636- America’s Small Business Tax Relief Act of 2015. His yes vote will give small businesses the certainty they need to grow.  

The bill would make permanent and index for inflation the $500,000 level of Section 179 enhanced small business expensing, which expired at the end of 2014.  The bill also would make permanent provisions to reduce tax burdens on S corporations.  Congressman Yoho gave the following statement after his vote.

“Small businesses are the economic engines that drive America. As a former small business owner - for 30 years - I know how important it is to expense equipment that is needed for day to day operations and to potentially expand a business. This bill sets tax provisions in place permanently so owners don’t have to speculate on what their future expenses will be. This added piece of mind provides certainty to grow, which translates into creating more jobs. I will always support common sense legislation that helps make America’s economy strong.”     

SUMMARY of H.R 636

Bill provides that Code section 179 expensing will be made permanent at the 2014 levels. Taxpayers will be able to expense up to $500,000 of investments in new equipment and property per year, with the deduction phased out for investments exceeding $2,000,000 (with both amounts indexed for inflation).  The bill also restores and makes permanent rules allowing computer software and certain investments in real property to qualify for section 179 expensing, subject to the overall expensing limit.

The bill will allow investments in air conditioning and heating units to qualify for section 179 expensing. With respect to S corporations, the bill makes permanent the five-year recognition period during which an S corporation is subject to an entity-level tax at the highest corporate rate on certain built-in gains of property that it held while operating as a C corporation. 

The bill also makes permanent the basis-adjustment rule for S corporation shareholders, providing consistent treatment of charitable contributions between S corporation shareholders and partners in a partnership. The bill is effective for tax years beginning after 2014.

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Congressman Ted Yoho serves on the Foreign Affairs and Agriculture Committees. He represents North Florida’s 3rd Congressional District