Congress quietly doubles business tax write-offs, locks in permanent relief
S. 1688 — Growing America’s Small Businesses and Manufacturing Act · Filed by John Barrasso (R-WY) · 11 cosponsors · Introduced May 8, 2025 · Referred to committee
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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 full analysis lists 4 implications of this text.
Who stands to gain
pass-through entities (S-corporations, LLCs, partnerships); small to mid-sized manufacturing firms; construction and equipment-leasing companies