FALLS CHURCH, Va. — A recent legislative survey by the Plumbing-Heating-Cooling Contractors — National Association (PHCC) indicates that the organization’s members support an increase in the expensing allowance. The issue ranked as the second highest tax priority by PHCC members. The first is the repeal of the estate tax.

The House and Senate have passed two separate budget resolutions. The House resolution calls for $550 billion in tax cuts, while the Senate resolution establishes a blueprint for $350 billion in tax incentives.

One of the tax incentives, which PHCC says is generating favorable attention, would increase the amount small businesses can expense, also known as Section 179 (from the IRS code) expensing. Small businesses currently can expense up to $25,000, but the new proposal would increase that amount to $75,000.

Publication date: 04/28/2003