NFFS supports legislation to double Section 179 expensing for small businesses
The Non-Ferrous Founders’ Society (NFFS) has added its support to the Small Business Growth Act, recently reintroduced by Representative Blake Moore (R-UT), which seeks to double the Section 179 small business expensing limits. This important legislation would increase the maximum deduction from $1 million to $2 million and raise the phase-out threshold from $2.5 million to $3.5 million. If enacted, these changes would take effect for property placed in service starting in tax year 2026.
Why Section 179 Matters for Non-Ferrous Foundries
Section 179 of the Internal Revenue Code allows businesses to immediately deduct the full purchase price of qualifying equipment and machinery, rather than depreciating it over several years. For nonferrous foundries, this provision is critical, as it enables faster reinvestment in:
- New and upgraded casting equipment to enhance production efficiency
- Advanced environmental and safety systems to maintain regulatory compliance
- Automation and process improvements to offset labor shortages
- Tooling and mold-making investments to remain competitive in a global market
By doubling the deduction limit, the Small Business Growth Act will help foundries accelerate capital investment, improve cash flow, and support long-term growth. Given the rising costs of industrial equipment and the economic pressures facing small manufacturers, expanding Section 179 expensing is a direct and effective way to strengthen the American non-ferrous foundry industry.
NFFS will continue advocating for pro-business tax policies that support reinvestment and job creation in the nonferrous metal casting industry. Members are encouraged to follow updates on this legislation and engage with policymakers to highlight its importance.