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Small Business Owners Overwhelmingly Support Full Expensing

December 15, 2023

New poll finds full expensing would boost hiring, wages and investment

Nearly 90% of small business owners support full expensing, a policy that allows companies to deduct the cost of their investment entirely in the year the investment is made, according to a recently completed poll.

While businesses were able to deduct the full cost of investments in capital expenditures between 2018 and 2022, the policy began to sunset in 2023. Starting in 2024, companies will only be able to deduct 60% of those expenses in the year acquired and, without congressional action, the accelerated tax treatment will end all together in 2027.

The survey also found:

  • 74% of small business owners have benefited from the accelerated tax deduction because they invested in equipment, technology and building improvements.
  • 67% said an immediate deduction for the full cost of a capital expenditures would make them more likely to hire new employees or raise wages.
  • 85% of small business owners reported that the certainty a permanent full expensing policy would give them would make them more likely to reinvest in their company.
  • 69% said in times of high inflation full expensing is especially important.

The poll underscores the need for Congress to make full expensing permanent.

The Survey Monkey poll of roughly 200 small business owners was conducted between November 17 and November 20, 2023.

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