SMALL BUSINESS BILL FACES VETOBy
The news doesn’t look good for the America’s Small Business Tax Relief Act of 2015 (H.R. 636), passed by the House in February. Passage in the Senate is uncertain since it would require overriding President Obama’s promised veto. He said he would veto the bill because it adds $79 billion to the budget deficit over the next decade. The Senate will need significant support from Democrats to pass the bill and to override the veto. In the House, 33 Democrats voted for the bill, so there likely will be some support in the Senate. But will it be enough?
The bill makes permanent the $500,000 allowance for expensing depreciable business property (section 179 property) as well as the $2 million threshold after which the amount of the allowance is reduced. Both the allowance and the threshold amount are indexed for inflation for taxable years after 2015. The bill also makes permanent the allowance for computer software and qualified real property.