Three Key Small Business Provisions Authored by Senator Collins Included in Final Tax-Relief Bill

WASHINGTON, D.C.—Three key small business provisions, authored by U.S. Senator Susan Collins, have been incorporated into the tax-relief bill that will be considered by Congress later this week. The provisions are endorsed by the National Federation of Independent Business (NFIB), our nation’s largest small business advocacy organization.

“Small businesses create the majority of our nation's jobs. According to the Bureau of Labor Statistics, small businesses generated 63 percent of the net new jobs that were created between 1993 and 2013,” said Senator Collins.  “Small business owners across Maine and throughout our country tell me repeatedly that the constant change and uncertainty in our tax code have hindered their ability to invest and create new, good-paying jobs. I am so pleased that these three critically important tax incentives have been included in the tax-relief bill. They will provide the incentives and the certainty required for our small businesses to successfully create jobs and grow our economy.”

These three important provisions will strengthen our economy in Maine and across our nation and make it easier for small businesses to grow and create jobs:

  • Section 179 expensing will be made permanent at $500,000. Permanently setting Section 179 of our tax code at this higher level will give our small businesses the certainty they need to plan for expansion, invest in equipment, and hire new workers. This provision allows small businesses to immediately deduct the entire cost of newly acquired assets that are purchased or financed during the tax year. 
  • “Bonus depreciation” is extended.  Many business assets, from copy machines to tractors and other equipment wear out or “depreciate” with use. Bonus depreciation allows businesses to recover part of the cost of these assets right away, helping to offset the cost of purchasing new equipment. This provision will extend this important deduction for five years, providing much needed certainty for our businesses.
  • A faster depreciation for restaurant improvements is made permanent. This permanent extension will enable restaurants that renovate their spaces to depreciate the cost of property improvements over 15 years rather than 39 years. 

These three provisions were introduced originally as part of the bipartisan Small Business Tax Certainty and Growth Act, authored by Senator Collins and Senator Bob Casey (D-PA). 

Following the introduction of this legislation, Amanda Austin, the Vice President of Public Policy of NFIB, wrote to Senator Collins in support of the legislation, stating that it would “provide certainty and permanency with regard to several important tax provisions for small businesses.” She continued, stating, “the most important source of financing for small business is their earnings, i.e. cash flow…This is why NFIB is particularly pleased to see the inclusion of reformed Section 179 expensing...”

The Collins-Casey legislation also has been endorsed by the Maine Chamber of Commerce, the Maine Society of Certified Public Accountants, the Manufacturers Association of Maine, the Retail Association of Maine, NFIBthe National Restaurant Association, the National Retail Federation, and the National Taxpayers Union.