Growing America’s Small Businesses and Manufacturing Act

This bill amends the Internal Revenue Code to permanently extend certain tax provisions and increase expensing limits for depreciable business assets, aiming to support small businesses and manufacturing.

Sec. 2, Permanent extension of allowance for depreciation, amortization, or depletion in determining the limitation on business interest: This section removes the expiration date for the allowance of depreciation, amortization, or depletion when calculating the business interest deduction limit under section 163(j)(8)(A)(v) of the Internal Revenue Code. The change applies to taxable years beginning after December 31, 2024.

Sec. 3, Increase in limitations on expensing of depreciable business assets: This section increases the maximum amount that can be expensed under section 179 of the Internal Revenue Code from $1,000,000 to $2,500,000, and raises the phase-out threshold from $2,500,000 to $4,000,000. It also updates the inflation adjustment rules to use 2025 as the base year for the new limits, with 2018 retained for the phase-out amount. These changes apply to property placed in service in taxable years beginning after December 31, 2024.