Small Business Expensing Temporary Expansion Act of 2008

Small Business Expensing Temporary Expansion Act of 2008 - Amends the Internal Revenue Code to: (1) increase the expensing allowance for small business depreciable assets to $500,000 between 2008 and 2011; (2) increase the threshold for reductions in the expensing allowance to $2 million between 2008 and 2011; and (3) adjust such higher expensing amounts for inflation between 2008 and 2011.

[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5085 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 5085

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 22, 2008

  Mr. Herger 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 Temporary 
Expansion Act of 2008''.

SEC. 2. INCREASE IN EXPENSING FOR SMALL BUSINESS.

    (a) In General.--Paragraph (1) of section 179(b) of the Internal 
Revenue Code of 1986 (relating to dollar limitation) is amended by 
striking ``$125,000 in the case of taxable years beginning after 2006 
and before 2011'' and inserting ``$500,000 in the case of taxable years 
beginning after 2007 and before 2011''.
    (b) Phaseout of Limitation Only by 50 Percent of Excess Over 
$2,000,000.--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 the amount (one-half of such amount in the case 
        of taxable years beginning after 2007 and before 2011) by which 
        the cost of section 179 property placed in service during such 
        taxable year exceeds $200,000 ($2,000,000 in the case of 
        taxable years beginning after 2007 and before 2011).''.
    (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 ``2007 
        and before 2011, the $125,000 and $500,000'' and inserting 
        ``2008 and before 2011, the $500,000 and $2,000,000'', and
            (2) in clause (ii) by striking ``calendar year 2006'' and 
        inserting ``calendar year 2007''.
    (d) Effective Date.--The amendments made by this section shall 
apply to property placed in service in taxable years beginning after 
December 31, 2007.
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