NFIB Release Praising Herger Legislation

[2] Herger's legislation would implement one of the key items included in President Bush's small-business agenda: an increase in Section 179 small-business expensing limits. U.S. Sens. Susan Collins (Maine), Kit Bond (Mo.) and Tim Hutchinson (Ark.) have introduced similar legislation in the Senate.

[3] A majority of NFIB members exceed the current small- business expensing limit in only three months. The limit for 2002 is only $24,000. Herger's bill raises the threshold to $40,000 and indexes it for inflation. It also allows more businesses to qualify for the provision by increasing from $200,000 to $325,000 the total amount a business may invest in a year and qualify for the provision. This will allow additional investments in the business to be expensed, thus helping small businesses expand and create new jobs.

[4] Herger's legislation would lower the cost of capital for tangible property and eliminate depreciation record-keeping requirements for many small businesses. It also updates the tax code to reflect the reality of today's technology-based workplace by allowing off-the-shelf computer software to be expensed, which is critical to the continued success of our economy and to the daily advancement of small business in America. Allowing small business to depreciate software assets while they are still useful and efficient technologies is critical to future technological development in the job producing engines of our economy. This change would provide small-business owners the opportunity to compete in today's high- technology markets.

[5] "Congressman Herger has once again taken the lead in helping small businesses in California and across the nation get the relief they need and deserve," said NFIB Senior Vice President Dan Danner. "Hopefully, these common-sense measures will be enacted in this session of Congress."

[6] The National Federation of Independent Business (NFIB) is the nation's largest small-business advocacy group. A nonprofit, nonpartisan organization founded in 1943, NFIB represents the consensus views of its 600,000 members in Washington and all 50 state capitals. More information is available on-line at www.nfib.com.