U.S. Senators Shelley Moore Capito and John Barrasso have introduced the Growing America’s Small Businesses and Manufacturing Act, aiming to boost investment in American manufacturing and aid small businesses, farmers, and ranchers in acquiring necessary equipment and supplies.
The proposed legislation intends to lower tax burdens for business owners purchasing equipment such as machinery, farming tools, energy infrastructure, building upgrades, commercial vehicles, and mining equipment. This measure is designed to free up resources for employee salaries, materials, and other essential business expenses.
Senator Capito remarked on the importance of manufacturers and small business owners in West Virginia’s economy: “The Growing America’s Small Businesses and Manufacturing Act will give them the tools they need to compete, grow, and hire.” Senator Barrasso emphasized support for Wyoming’s economy: “Wyoming’s small businesses are what keeps our economy going strong. We want to make sure they have every opportunity to succeed.”
Charles Crain from the National Association of Manufacturers expressed support for the bill: “Manufacturers commend Sens. Barrasso and Capito for their leadership in introducing this bill.” Jeff Brabant from the National Federation of Independent Business noted that doubling the small business expensing threshold would significantly benefit small employers.
Michael O’Rielly from the RAIN Coalition highlighted how restoring the EBITDA standard would assist businesses in investing and creating jobs. Sean Kennedy from the National Restaurant Association acknowledged tax policy’s role in supporting restaurant industry growth: “Pro-growth policies ensure that restaurant owners can continue investing in their businesses.”
The legislation includes two main proposals. The first restores flexibility by revising limitations on business interest deductions from 30% of Earnings Before Interest and Taxes (EBIT) back to 30% of Earnings Before Interest, Taxes, Depreciation, Amortization (EBITDA). The second proposal enhances Section 179 by raising its deduction cap from $1 million to $2.5 million under the Tax Cuts and Jobs Act framework.
