Small business owners are on edge as they wait to see if Congress will approve a big increase in the tax break they get to buy new equipment.
The so-called Section 179 deduction, which is aimed at helping small businesses grow, is caught up in a debate over a number of tax provisions. Lawmakers are haggling over whether to raise the $25,000 deduction to $500,000 for the current tax year only, or to make the higher level permanent for future years. If they can’t reach an agreement, the deduction would remain at the lower amount.
Congress had hoped to wrap up a $1.1 trillion spending bill that includes the Section 179 deduction by midnight this Friday. But talks on the bill have stalled and it’s not known when lawmakers might reach an agreement.