Some truck buyers may get a larger tax write-off in 2007, thanks to a bill increasing the minimum wage. At press time, Congress was nearing agreement on a package of tax relief for small businesses to add to the wage-hike legislation. President Bush is expected to sign the bill if it includes small-business tax help.
One provision would bump up the amount of expensing, or immediate write-off, allowed on equipment purchased in 2007 to $125,000 from $100,000 under current law. Taxpayers could claim this write-off if they buy a total of $500,000 of equipment or less in 2007. That maximum is also an increase, from $400,000 in present law. The new totals would be indexed in future years.
The bill also extends the expiration date for enhanced expensing by one year, to cover purchases through 2009.
