WASHINGTON – U.S. Senator Tommy Tuberville (R-AL) joined U.S. Senator John Barrasso in introducing The Growing America’s Small Businesses and Manufacturing Act. This legislation will boost investment in further developing America’s manufacturing capabilities and help small businesses, farmers, and producers purchase the equipment and supplies they need to build their operations and support their employees.
Specifically, this bill will reduce the tax burden for business owners purchasing equipment—including machinery, farming equipment, energy infrastructure, building upgrades, commercial vehicles, mining equipment, and more. This allows business owners to invest more into employee salaries, materials, and other critical business expenditures.
“I’ve said it many times—small businesses are the heart and soul of the American economy,” said Sen. Tuberville. “Enabling Alabama’s over 420,000 small businesses to thrive is one of my top priorities here in Washington. Small businesses face an uphill challenge with heightened regulation and insane prices. Reducing taxes for these business owners will go a long way in lifting the burden they often face when purchasing crucial equipment needed to keep their doors open.”
“Wyoming’s small businesses are what keeps our economy going strong. We want to make sure they have every opportunity to succeed,” said Sen. Barrasso. “Right now, they face an uphill battle with high prices and a mountain of new regulations. The Growing America’s Small Businesses and Manufacturing Act will go a long way in helping Wyoming’s farmers, ranchers and small businesses expand their operations, better compete and hire more workers.”
Sens. Tuberville and Barrasso are joined by Sens. Marsha Blackburn (R-TN), Katie Britt (R-AL), Shelley Moore Capito (R-WV), Ted Cruz (R-TX), Steve Daines (R-MT), John Hoeven (R-ND), James Lankford (R-OK), Pete Ricketts (R-NE), Tim Sheehy (R-MT), and Todd Young (R-IN) in cosponsoring the legislation.
National Association of Manufacturers, National Federation of Independent Business, Restore American Investment Now (RAIN) Coalition, Business Roundtable, USTelecom, American Forest & Paper Association, American Exploration & Production Council, National Restaurant Association, Equipment Leasing and Finance Association, National Railroad Construction and Maintenance Association, Small Business Investor Alliance, American Car Rental Association, National Tooling and Machining Association, Forging Industry Association, American Mold Builders Association, Independent Electrical Contractors, Industrial Fasteners Institute, Precision Machined Products Association, Non-Ferrous Founders’ Society, North American Die Casting Association, and Precision Metalforming Association endorsed the legislation.
Read full text of the legislation here.
BACKGROUND:
The Growing America’s Small Businesses and Manufacturing Actdelivers two pro-growth tax proposals that will boost investment in capital-intensive industries like manufacturing, energy production, and agriculture.
Expanded Business Interest Deduction:
- The first reform addresses the additional limitation on business interest deductions that went into effect in 2022, restoring business flexibility and investment potential.
- The bill revises the limitation from 30% of a business’s Earnings Before Interest and Taxes (EBIT), back to 30% of Earnings Before Interest, Taxes, Depreciation, Amortization, and depletion (EBITDA).
- This protects businesses from being punished for investing in new machinery, capital equipment, mining, drilling, and research and development (R&D).
Enhanced Small Business Expensing:
- The second provision expands Section 179, which allows taxpayers to deduct the cost of certain business assets in the year they are purchased rather than depreciating them over time.
- Under the 2017 Tax Cuts and Jobs Act, the maximum deduction amount was increased to $1 million from $500,000, helping small businesses acquire the equipment needed to expand operations.
- The bill builds on this success by lifting the deduction cap to $2.5 million, accelerating small businesses’ access to capital.
- The provision covers a wide range of eligible expenses, including machinery, mining tools, farming implements, energy production equipment, commercial vehicles, building upgrades, and other critical investments.
MORE:
Tuberville, Colleagues Celebrate Small Businesses During Small Business Week
Tuberville Reintroduces Legislation to Repeal Corporate Transparence Act, Protect Small Businesses
Tuberville Fights to Give Small Businesses a Tax Break
Senator Tommy Tuberville represents Alabama in the United States Senate and is a member of the Senate Armed Services, Agriculture, Veterans’ Affairs, HELP and Aging Committees.
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