Kuster Talks Tax Deductions in Concord

U.S. Rep. Ann McLane Kuster, D-NH, was in Concord earlier this week to talk taxes, specifically, increasing the business depreciation deduction exemption via a new Small Business Growth and Investment Act.

The bill, HR 4501, alters a clause in the tax code to allow for a larger depreciation and deduction for small businesses via Section 179.

Mark Dartnell, the owner of Taylor Rental in Concord, spoke with Kuster about a change in the provision that lowered the amount that could be deducted in one year to $25,000. The previous limit was $125,000, but that amount was raised to $500,000 as part of the Stimulus Act. Kuster’s plan raises the limit back up to $250,000.

The previous capital deductions were $500,000 in 2007 and $2 million up until last year, when it dropped down to $200,000. Kuster’s bill raises it back up to $800,000.

The act’s provision expired at the end of last year.

Kuster introduced the bill in late April, according to govtrack.us, and called it "a bipartisan proposal."

Kuster said that she hoped the change would allow businesses like Dartnell's to get more of its deductions back from equipment purchases earlier instead of amortizing across five years to spur hiring or more capital purchases now rather than later, with the funds that were freed up.

Dartnell said that with his business, he continually has to buy new tents to replace older ones that he rents out. The tents can cost up to $14,000. He also buys Bobcat Earthmovers that due to changes in emissions standards in California, now cost 15 to 20 percent more than before, tying up capital for other things.