Tax writers seek Section 179 extension

A bipartisan pair of tax writers is seeking to extend long-term a tax break that allows small businesses to immediately deduct the cost of investments.

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Reps. Pat Tiberi (R-Ohio) and Ron KindRon KindLawmakers targeted as district politics shift New bill does hard job of injecting capital into needy communities House GOP campaign arm targets Democrats over ObamaCare anniversary MORE (D-Wis.) would allow businesses to expense up to $500,000 a year, the expanded levels in place until the end of last year. 

The so-called Section 179 expensing levels dropped to $25,000 this year. The expanded levels were among the more than 50 temporary tax provisions, commonly known as extenders, that expired at the end of 2013.

The Senate tax extenders package, crafted by Finance Chairman Ron WydenRon WydenWhat killing net neutrality means for the internet Overnight Tech: Net neutrality fight descends into trench warfare | Zuckerberg visits Ford factory | Verizon shines light on cyber espionage Franken, top Dems blast FCC over net neutrality proposal MORE (D-Ore.) and the committee's top Republican, Sen. Orrin HatchOrrin HatchWhen political opportunity knocked, Jason Chaffetz never failed to cash in Ginsburg pines for more collegial court confirmations Senate's No. 2 Republican: Border tax 'probably dead' MORE (Utah), would revive the $500,000 expensing level through 2015. Majority Leader Harry ReidHarry ReidDraft House bill ignites new Yucca Mountain fight Week ahead: House to revive Yucca Mountain fight Warren builds her brand with 2020 down the road MORE (D-Nev.) has signaled that he wants to move soon on the extenders package.

In the House, Ways and Means Chairman Dave Camp (R-Mich.) has said he wants a longer-term solution for the temporary provisions, keeping some permanently and tossing aside others. Camp has asked tax writers to introduce measures like Tiberi and Kind's Section 179 proposal to help spur that process.

Camp's tax reform draft revives the $500,000 expensing level as well, and lobbyists believe that section 179 would be among the first expired tax breaks that Camp would want to extend. The Ways and Means chairman has signaled that, unlike Senate Finance, he won't move a large extenders package.