EXTENSION AND INCREASE OF EXPENSING FOR SMALL BUSINESS.

SEC. 8212. EXTENSION AND INCREASE OF EXPENSING FOR SMALL BUSINESS.(a) Extension.—Subsections (b)(1), (b)(2), (b)(5), (c)(2), and (d)(1)(A)(ii) of section 179 (relating to election to expense certain depreciable business assets) are each amended by striking “2010” and inserting “2011”.(b) Increase in Limitations.—Subsection (b) of section 179 is amended—(1) by striking “$100,000 in the case of taxable years beginning after 2002” in paragraph (1) and inserting “$125,000 in the case of taxable years beginning after 2006”, and(2) by striking “$400,000 in the case of taxable years beginning after 2002” in paragraph (2) and inserting “$500,000 in the case of taxable years beginning after 2006”.(c) Inflation Adjustment.—Subparagraph (A) of section 179(b)(5) is amended—(1) by striking “2003” and inserting “2007”,(2) by striking “$100,000 and $400,000” and inserting “$125,000 and $500,000”, and(3) by striking “2002” in clause (ii) and inserting “2006”.121 STAT. 193(d) Effective Date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2006.