Included in the economic plan proposed by the president is a permanent increase in the amount businesses are allowed to expense on capital equipment, up to $75,000 from the current cap of $25,000.
"President Bush has recognized that small businesses, including HVACR contractors, are being squeezed from all sides right now," said Paul T. Stalknecht, president and CEO of ACCA. "Under this plan, contractors will be able to write off a significantly higher amount of money spent on new equipment and technology purchases."
The proposal would also index the $75,000 expensing allowance in 2004, so that it would rise with inflation each year. Currently, this deduction is available on equipment purchases of up to $200,000; under the president's plan, the higher expensing allowance would be available on equipment costing up to $325,000.
ACCA called on Congress to accept the president's expensing proposals and include the increase to $75,000 in any final stimulus legislation. "This provision means real money in the pockets of small contractors and their employees all over the country," Stalknecht said. "We applaud President Bush for including this proposal in his package. It will have a tremendous impact, but it needs to happen soon."
Publication date: 01/13/2003