Recently, we talked a little about about the uncertain fortunes of the Section 179 deductions and bonus depreciation in 2013. Long story made extremely short, they’re going to drop considerably in 2013, taking away a pretty nice deduction for small businesses leasing equipment.
Or are they?
Equipment Leasing & Finance magazine’s Richard Shanahan put together an interesting article on how ELFA has worked to advocate for continuing and improving some of those tax benefits coming into 2013. Not only would the advocates like to see the Section 179 total retained, they’d like to increase it back to the $250,000 it was before the cuts starting rolling downhill. For any small business considering new equipment, this would be a potentially huge windfall.
The chances of this passing, as we’ve mentioned, are likely to be determined by the way the political winds blow in the coming months. ELFA is a powerful advocate because it represents an industry that is not predominantly small business, but is necessary for small business survival. Their words carry weight in this debate, in other words.
This points to the importance of advocacy, and the importance of letting your voice be heard in Washington. ELFA on their own can lobby and push Congress to make these changes, giving small businesses significant tax breaks. If Congress doesn’t hear from small businesses who support it, that may not be enough.
If you’ve used Section 179 in the past or you plan to in the future, write your Congressperson today. How do you feel about Section 179?
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