Hoeven, Cantwell Introduce the Farm and Small Business Expensing Tax Relief Act
Senators’ Bill Eases Tax Burden of Expensing Repair Costs for Small Businesses, Family Farms
WASHINGTON – Senators John Hoeven (R-N.D.) and Maria Cantwell (D-Wash.) have introduced the Farm and Small Business Expensing Tax Relief Act, legislation that eases the burden of unfair and onerous new repair expensing regulations for small businesses and family farms that became effective January 1st of this year. Hoeven’s and Cantwell’s legislation amends the IRS code to alleviate the negative impacts of the new Tangible Property Repair Regulations (TD 9636), which forces family farms and other businesses to meet unrealistic requirements to expense the cost of repairs. The new rule took effect in January 2014.
“In North Dakota, our family farms and ranches are the backbone of our economy, and our small businesses are the engine of our growth,” said Hoeven. “We need to foster a legal, tax and regulatory environment that creates certainty for our small businesses, farmers and ranchers, helping our economy to grow. This is what our legislation does. It makes these IRS regulations workable in the real world, protecting our small businesses from costs they cannot shoulder, both in terms of time and money.”
“Small businesses and farms drive job growth on Main Streets across America,” said Cantwell, the Chair of the Senate Committee on Small Business and Entrepreneurship. “This bipartisan bill will eliminate a one-size-fits-all approach that unfairly burdens smaller enterprises. Small businesses should be able to readily expand through purchasing or repairs without being overly burdened by complex and cumbersome regulations.”
This legislation follows a letter Hoeven sent to Internal Revenue Service (IRS) Commissioner John Koskinen this past January, calling on him to revise the new rules. Hoeven sent this letter after hearing from many tax professionals and constituents in North Dakota about the serious, negative consequences the new rules would have for many farmers, ranchers and small businesses in the state.
Next Article Previous Article