FOR IMMEDIATE RELEASE
June 16, 2008
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Senate Approves Vance Legislation Doubling
 Small Business Tax Break on Machinery, Equipment

HARRISBURG – The state Senate today passed legislation sponsored by Sen. Pat Vance (R-Cumberland/York) that increases the tax break small businesses can receive annually on the cost of purchasing machinery and equipment used for business purposes.

Senate Bill 1387 increases from $25,000 to $50,000 the deduction small businesses can take on their state income taxes for Section 179 expenses. Section 179 of the federal Internal Revenue Code allows for the upfront deduction of all or part of the costs of machinery and equipment.

"This legislation allows small businesses to deduct the cost of equipment in the year it is placed in service rather than writing off the cost over its depreciable life," Vance said. "By increasing the deduction near the time of purchase, this will encourage businesses to upgrade their equipment and provide a boost to suppliers. The higher deduction is expected to provide $6.6 million in tax breaks over the next fiscal year."

The bill now goes to the House for consideration. 

Vance's district includes all of Cumberland County and Carroll, Fairview, Franklin, Monaghan, Warrington and Washington townships and Dillsburg, Franklintown and Wellsville boroughs in York County.                                                               

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