Congress quietly doubles business tax write-offs, locks in permanent relief

What it does

This bill makes two permanent tax breaks for businesses: (1) it allows businesses to permanently deduct depreciation and amortization when calculating limits on business interest deductions, removing a 2022 expiration date; and (2) it doubles the amount of business equipment and assets that small businesses can immediately expense (write off) in a single year, from $1 million to $2.5 million, and raises the phase-out threshold from $2.5 million to $4 million. Both changes take effect for tax years beginning after December 31, 2024.

Why we flagged it

The bill's operative mechanism is a permanent expansion of tax deductions and expensing allowances for businesses. It is straightforward tax policy favoring capital-intensive businesses and pass-through entities, not a hidden rider or regulatory change.

What the text implies

• The permanent extension of depreciation allowances removes a scheduled expiration, locking in a tax benefit indefinitely without future congressional review or sunset clause.
• Doubling the Section 179 expensing limit disproportionately benefits capital-intensive industries (manufacturing, construction, agriculture) and pass-through entities (S-corps, LLCs, partnerships) whose owners report business income on personal returns.
• The inflation-adjustment reset from 2018 to 2025 as the baseline year may compound future inflation adjustments, further raising expensing thresholds over time.
• The bill does not include revenue offsets or corresponding spending cuts, implying increased federal deficits or reduced funding for other programs.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

The bill provides permanent tax relief to businesses—primarily larger small businesses and pass-through entities—by expanding immediate expensing and removing depreciation limits. This reduces federal revenue without offsetting public benefit, shifting the tax burden to other taxpayers or reducing funding for public services. The benefits flow disproportionately to business owners and investors, not to workers or consumers.

Who stands to gain

• pass-through entities (S-corporations, LLCs, partnerships)
• small to mid-sized manufacturing firms
• construction and equipment-leasing companies
• agricultural businesses
• business owners and investors claiming depreciation deductions

Named in the bill

Internal Revenue Code Section 163(j), Internal Revenue Code Section 179, U.S. Department of Treasury, Small businesses, Pass-through entities

Where it stands

11 cosponsors: 11 Republicans.

• May 8, 2025 — Introduced · Congress.gov: “Introduced in Senate”
• May 8, 2025 — Referred to Senate Committee on Finance · Congress.gov: “Read twice and referred to the Committee on Finance. (text: CR S2841)”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

13 lobbying clients named this bill on 14 disclosure filings across 2 quarters, Dec 2025 to Jun 2026. Those filings disclosed $1,140,000 in lobbying spend. A filing names 8 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 94% of bills with at least one filing.

John Barrasso, the sponsor, reported $408,500 in PAC receipts in the 2026 cycle. $2,000 of that came from 1 PAC tied to these lobbying clients.

• Leading Builders of America — $440,000 on 2 filings
• Tax Reform Coalition — $250,000 on 1 filing
• Alliance for Biopharmaceutical Competitiveness and Innovation — $70,000 on 1 filing
• Kenvue Inc. — $60,000 on 1 filing
• Bayer Corporation (formerly Known As Monsanto Company) — $50,000 on 1 filing

Lobbying Disclosure Act filings through Jul 1, 2026. A filing shows who paid to lobby on a bill it names, not what changed.