“President Bush has recognized that small business, including HVACR contractors, are being squeezed from all sides right now,” said Paul T. Stalknecht, ACCA president and CEO. “Under this plan, contractors will be able to write off a significantly higher amount of money spent on new equipment and technology purchases.”
According to ACCA, the proposal would also index the $75,000 expensing allowance in 2004, so it would rise with inflation each year. The organization also said that the current deduction is available on equipment purchases up to $200,000; under the president’s plan, the higher expensing allowance would be available for equipment costing up $325,000.
ACCA called on Congress to accept the president’s expensing proposals and include the increase to $75,000 in any final stimulus package.
Publication date: 01/27/2003