Small Business Expensing Improvement Act of 2003

Small Business Expensing Improvement Act of 2003 - Amends the Internal Revenue Code with respect to the expensing of depreciable business assets (section 179) to increase the maximum amount which may be expensed to $75,000 and the phase-out threshold to $325,000.

[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 179 Introduced in House (IH)]







108th CONGRESS
  1st Session
                                H. R. 179

 To amend the Internal Revenue Code of 1986 to expand the depreciation 
    benefits available to small businesses, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 7, 2003

 Mr. Herger (for himself, Mr. Weller, Mrs. Johnson of Connecticut, Mr. 
 Crane, Mr. Lewis of Kentucky, Mr. Foley, and Mr. Manzullo) introduced 
  the following bill; which was referred to the Committee on Ways and 
                                 Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to expand the depreciation 
    benefits available to small businesses, and for other purposes.

    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 Improvement 
Act of 2003''.

SEC. 2. MODIFICATIONS TO EXPENSING UNDER SECTION 179.

    (a) Increase of Amount Which May Be Expensed.--
            (1) In general.--Paragraph (1) of section 179(b) of the 
        Internal Revenue Code of 1986 (relating to dollar limitation) 
        is amended to read as follows:
            ``(1) Dollar limitation.--The aggregate cost which may be 
        taken into account under subsection (a) for any taxable year 
        shall not exceed $75,000.''
            (2) Increase in phaseout threshold.--Paragraph (2) of 
        section 179(b) of such Code is amended by striking ``$200,000'' 
        and inserting ``$325,000''.
            (3) Inflation adjustment of dollar amounts.--Subsection (b) 
        of section 179 of such Code is amended by adding at the end the 
        following new paragraph:
            ``(5) Inflation adjustment.--In the case of any taxable 
        year beginning in a calendar year after 2003, each dollar 
        amount contained in paragraph (1) or (2) shall be increased by 
        an amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins by substituting `calendar year 
                2002' for `calendar year 1992' in subparagraph (B) 
                thereof.
        If any amount, as adjusted under the preceding sentence, is not 
        a multiple of $1,000 ($10,000 in the case of the dollar amount 
        contained in paragraph (2)), such amount shall be rounded to 
        the nearest multiple of $1,000 or $10,000, as the case may 
        be.''
    (b) Effective Date.--The amendments made by this section shall 
apply to property placed in service in taxable years beginning after 
December 31, 2002.
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