WASHINGTON (Aug. 23, 2005) — Tire dealers are among the myriad of small businesses supporting the two-year extension of a 2003 change to the IRS code, quadrupling the capital equipment expensing limit for small businesses to $100,000.
The measure currently is set to lapse in 2008, at which time the expensing limit would drop to $25,000. Ron Lautzenheiser, owner of two Big O Tires Inc. automotive centers in Fort Collins, Colo., said at a hearing in Fort Collins that an extension of the expensing rule would alleviate his concerns about capital acquisitions for his business.
“Immediate tax savings lead to immediate reinvestment,” Mr. Lautzenheiser said.
Becky MacDicken, government affairs director for the Tire Industry Association, said the extension probably will be part of the budget reconciliation package to be introduced in Congress this fall.