U.S. Sen. Pat Toomey (R-PA) and U.S. Rep. Jodey Arrington (R-TX) recently introduced legislation that would make permanent the full and immediate expensing provision of the 2017 Tax Cuts and Jobs Act, that are set to expire at the end of 2022.
The Accelerate Long-Term Investment Growth Now (ALIGN) Act also aligns tax deductions with when businesses pay cash for the investment, applies to the same expenses outlined in the Tax Cuts and Jobs Act with a property class life of 20 years or less, and establishes the percentages of the tax deductions.
“The end of the COVID-19 pandemic is in sight, and Congress should enact policies that enable workers and job creators to propel our economic recovery,” Toomey said. “Allowing businesses to immediately write off purchases of new equipment was one of the most pro-growth features of the 2017 tax reform law. Capital investment grew, and workers became more productive, resulting in more jobs and higher wages. Our legislation will make full expensing permanent, providing manufacturers and businesses of all sizes with more certainty regarding investment planning and growth.”
The bill has the support of numerous organizations, including the U.S. Chamber of Commerce, the National Taxpayers Union, and the Business Roundtable.