Kay Granger Goes to Bat for Small Businesses - March 6, 2003
|March 6, 2003|
Washington, DC- Congresswoman Kay Granger (R-Fort Worth) has authored bipartisan legislation to boost the economy by creating incentives for small businesses to expand and create new jobs. The Small Business Tax Fairness Act would allow small firms to expense more of their new investments – encouraging them to buy technology, machinery, and other equipment they need to expand.
"Small businesses play the leading role in economic recovery, generating approximately two-thirds of all new jobs," Representative Granger said. "To support this critical sector of our economy, we need to create a vibrant entrepreneurial environment that rewards investment and expansion."
Granger’s bill would increase the amount that a business can write off for new equipment purchases from $25,000 to $100,000. To ensure that small firms are the prime beneficiaries of the expensing increase, the amount of investment qualifying for this deduction would begin to phase out for businesses with investment in excess of $400,000. The legislation also would allow businesses to expense computer software for the first time.
"Increasing the expensing limits for small businesses lowers their costs of doing business, allowing them to grow and create new jobs," explained Granger, who was the first woman to be named to the Fort Worth Business Hall of Fame as Executive of the Year.
The Small Business Tax Fairness Act also would level the playing field for restaurant owners, who are at a competitive disadvantage with other employers. Commercial buildings such as convenience stores are allowed to depreciate over a 15-year period while restaurant buildings, which typically experience greater traffic, have a depreciation schedule of 39 years.
Granger’s bill would allow restaurant owners to depreciate the cost of their building at the same rate of 15 years. President Bush has made increasing expensing limits a key part of his economic recovery package. Granger’s legislation is supported by the National Association of Women Business Owners, the National Federation of Independent Businesses, the National Restaurant Association, and the U.S. Chamber of Commerce. Representative Martin Frost (D-Dallas) is among the original cosponsors of the bill.