Small Business Expensing Expansion and Permanency Act of 2007

Small Business Expensing Expansion and Permanency Act of 2007 - Amends the Internal Revenue Code to: (1) increase the expensing allowance (i.e., a tax deduction in the current taxable year) for small business assets to $200,000 and make such allowance permanent; (2) increase the threshold for phaseout of such allowance to $800,000 (cost basis of property placed in service); (3) allow an inflation adjustment to the expensing and threshold amounts beginning after 2007; (4) make permanent the right of a taxpayer to revoke an election to expense; and (5) make permanent the inclusion of certain computer software as property eligible for expensing.

[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1797 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 1797

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 29, 2007

      Mr. Herger (for himself, Mr. Brady of Texas, Mr. English of 
 Pennsylvania, 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 Expansion 
and Permanency Act of 2007''.

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 2010)'' and inserting ``$200,000''.
    (b) Phaseout of Limitation Only by 50 Percent of Excess Over 
$800,000.--Paragraph (2) of section 179(b) of such Code (relating to 
reduction in limitation) is amended to read as follows:
            ``(2) Reduction in limitation.--The limitation under 
        paragraph (1) for any taxable year shall be reduced (but not 
        below zero) by one-half of the amount by which the cost of 
        section 179 property placed in service during such taxable year 
        exceeds $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 2010, 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 2010''.
    (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 2010''.
    (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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