Small Business Expensing Permanency Act of 2006

Small Business Expensing Permanency Act of 2006 - Amends the Internal Revenue Code to: (1) increase and make permanent the taxpayer election to expense (i.e., deduct all costs in current taxable year) depreciable business property, including computer software; (2) increase the investment threshold amount used to calculate reductions in the amount of such expensing allowance; (3) allow an inflation adjustment to the amount of the expensing allowance and the investment threshold amount; and (4) make permanent the taxpayer's right to revoke an election to expense.

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4790 Introduced in House (IH)]







109th CONGRESS
  2d Session
                                H. R. 4790

  To amend the Internal Revenue Code of 1986 to expand expensing for 
                            small business.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 16, 2006

 Mr. Herger (for himself, Mr. Chocola, Mr. Lewis of Kentucky, and Mrs. 
  Musgrave) 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 expensing for 
                            small business.

    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 Permanency 
Act of 2006''.

SEC. 2. INCREASED EXPENSING FOR SMALL BUSINESS MADE PERMANENT.

    (a) In General.--Paragraph (1) of section 179(b) of the Internal 
Revenue Code of 1986 (relating to dollar limitation) is amended by 
striking ``$25,000 ($100,000 in the case of taxable years beginning 
after 2002 and before 2008)'' and inserting ``$200,000''.
    (b) Increase in Qualifying Investment at Which Phaseout Begins.--
Paragraph (2) of section 179(b) of such Code (relating to reduction in 
limitation) is amended by striking ``$200,000 ($400,000 in the case of 
taxable years beginning after 2002 and before 2008)'' and inserting 
``$800,000''.
    (c) Rebasing of Inflation Adjustments.--Section 179(b)(5)(A) of 
such Code (relating to inflation adjustments) is amended--
            (1) in the matter preceding clause (i) by striking ``2003 
        and before 2008, the $100,000 and $400,000'' and inserting 
        ``2007, the $200,000 and $800,000'', and
            (2) in clause (ii) by striking ``calendar year 2002'' and 
        inserting ``calendar year 2006''.
    (d) Revocation of Election Made Permanent.--Section 179(c)(2) of 
such Code (relating to election irrevocable) is amended by striking 
``and before 2008''.
    (e) Off-the-Shelf Computer Software.--Section 179(d)(1)(A)(ii) of 
such Code (relating to section 179 property) is amended by striking 
``and before 2008''.
    (f) Effective Date.--The amendments made by this section shall 
apply to property placed in service in taxable years beginning after 
December 31, 2006.
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