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Congress passes extension of tax expensing provision

December 22, 2014

Washington — With the help of ADA members, Congress passed H.R. 5771, the Tax Increase Prevention Act of 2014, which has extended the Section 179 expensing tax provision for 2014.

Without passage of the bill, dental practices would have only been permitted to write off $25,000 of investments in 2014, and the tax benefit would have phased out for investments above $200,000.

In an ADA action alert sent last month, ADA members were urged to contact their representatives to explain the importance of supporting an extension of the Section 179 tax provision to the end of 2014.

“The extension of [tax code] Section 179 is important to dental practices, both as small businesses and as providers of care,” the Nov. 18 member alert said. “It allows businesses to deduct up to $500,000 for investments in new equipment and property, phasing out for investments exceeding $2 million. If Congress does not act to extend this provision, those levels will revert back to pre-stimulus levels of $25,000 and $200,000, respectively.”

ADA members sent over 8,500 emails to Congress urging lawmakers to extend the provision. In addition, ADA staff met with key legislators and staff about the issue throughout the year.

President Barack Obama is expected to sign H.R. 5771 into law when he receives it.