S. 1688, the Growing America's Small Businesses and Manufacturing Act, makes two main tax changes designed to help small businesses and manufacturers. First, it permanently extends a rule that allows businesses to deduct depreciation and amortization when calculating limits on business interest deductions, removing an expiration date that was set for 2022. Second, it doubles the amount of business equipment and assets that small businesses can immediately deduct and expense for tax purposes—raising the limit from $1 million to $2.5 million, and increasing the phase-out threshold from $2.5 million to $4 million. Both changes take effect for tax years beginning after December 31, 2024, and the bill includes inflation adjustments to keep these limits current over time. The legislation primarily benefits small business owners, manufacturers, and other companies that purchase equipment and property for their operations.
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