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ADA urges extension of tax expensing provision

November 18, 2014

By Craig Palmer

Washington — An ADA action alert, the first during the lame-duck session of the 113th Congress, urges members to contact their members of Congress “and explain the importance of supporting an extension of the Section 179 tax provision prior to the end of 2014.”

The equipment expensing provision is one of the several so-called tax extenders Congress may address during its waning days in session this year. The 114th Congress, which convenes in January, could address expired tax provisions retroactively.

“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.

“Without the incentive the current law provides, many of you would find it more difficult to purchase the equipment necessary to deliver the high-quality dental care patients in this country have come to expect from their dentists,” the alert said.

The ADA action alert offered computer-aided design/computer-aided manufacturing (CAD/CAM) machines and the transfer of paper to electronic health records as examples of “very expensive improvements that are greatly facilitated by the higher tax deduction allowance.

“Please take action now and inform your representative about the need to support an extension of the Section 179 tax provision in legislation coming before Congress that would extend expiring tax provisions,” the alert said.