S.187 - Accelerate Long-term Investment Growth Now Act; ALIGN Act (119th Congress)
Summary
The Accelerate Long-term Investment Growth Now Act (ALIGN Act), or S.187, aims to amend the Internal Revenue Code of 1986 to permanently allow a tax deduction at the time an investment in qualified property is made. This bill seeks to make 'full expensing' permanent, allowing businesses to immediately deduct the full cost of certain investments rather than depreciating them over time. The bill was introduced in the Senate on January 22, 2025, and referred to the Committee on Finance.
Expected Effects
If enacted, the ALIGN Act would incentivize businesses to invest in qualified property by providing immediate tax relief. This could lead to increased capital investment and economic growth. The changes would be retroactive, taking effect as if included in section 13201 of Public Law 115-97.
Potential Benefits
- Increased business investment due to immediate tax deductions.
- Potential for accelerated economic growth.
- Simplified tax accounting for businesses.
- Encouragement of investment in new technologies and equipment.
- Could lead to increased productivity and competitiveness.
Most Benefited Areas:
Potential Disadvantages
- Potential for increased budget deficits due to immediate revenue loss.
- May disproportionately benefit large corporations.
- Possible inflationary pressures if demand increases significantly without corresponding supply increases.
- Complexity in defining 'qualified property' may lead to disputes.
- Could create an incentive for short-term investments over long-term strategic planning.
Most Disadvantaged Areas:
Constitutional Alignment
The bill falls under the purview of Congress's power to lay and collect taxes, duties, imposts, and excises, as outlined in Article I, Section 8, Clause 1 of the Constitution. The bill does not appear to infringe upon any specific constitutional rights or limitations. The power to regulate taxation is a broad power granted to Congress.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).