# Plain Language Summary: Small Business Growth Act

This bill makes it easier for small business owners to deduct the cost of equipment and machinery purchases from their taxes. Right now, businesses can immediately write off up to $1 million in equipment purchases in a single year through something called "Section 179 expensing." This bill doubles that limit to $2 million, meaning a small business owner could buy twice as much equipment and get an immediate tax break instead of having to spread the deduction over many years.

The bill also raises a related threshold from $2.5 million to $3.5 million. This second number matters because once a business buys more equipment than this threshold in a year, the $1 million (or $2 million under this bill) deduction starts to phase out. So if a business buys $3.6 million in equipment, they lose some of their deduction ability. By raising this threshold to $3.5 million, the bill gives businesses more breathing room before they hit that penalty.

Additionally, the bill updates how these limits adjust for inflation going forward. Currently, the limits are adjusted based on 2017 prices, but the bill changes this to use 2025 prices as the baseline. This means the limits will grow more accurately with inflation in future years. The changes take effect for equipment purchases made starting January 1, 2026, giving businesses time to plan. The main benefit here is that small business owners will have more money to reinvest in equipment—whether that's new machinery, vehicles, or technology—without taking as big of a tax hit.