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Small Business Bill Passes House, Next Stop the Senate

Small Business Bill

The House has passed a $77 billion bill that allows small businesses, including apartment firms, to permanently write off up to $500,000 in qualifying investments in the year of purchase. This expensing limit would be phased down if overall investment costs exceed $2 million – ultimately, limiting the proposal to smaller apartment operators. Without legislation, small businesses can only immediately deduct $25,000 in investment costs in 2015.

This legislation now moves to the Senate and represents the first step in what is likely to be a long process to once again renew dozens of tax provisions that Congress extended last December through 2014. Several of these so-called tax extenders benefit the apartment industry, including bonus depreciation, the flat 9 percent Low-Income Housing Tax Credit, incentives for energy-efficiency and the New Markets Tax Credit.

However, the Obama Administration opposes enacting permanent small business legislation that does not include a revenue offset. So lawmakers may resort to their usual pattern of waiting until later this year to send the White House a package that addresses expired tax provisions for a period of just one or two years.

NAA/NMHC joined with a coalition of trade associations in a letter voicing support for the small business expensing bill and will continue to push for its enactment.


Provided by NMHC as part of the NAA/NMHC Joint Legislative Program