Tax Breaks for Small business to mollify small business owners ? Print E-mail
Tax Breaks for Small business to mollify small business owners ? The Finance Committee unanimously passed a tax relief package which includes credits for small businesses that hire hard-to-employ workers, increased deductions for improving buildings, and measures to help small businesses simplify their bookkeeping,etc. The idea to soften the impact of federal minimum wage increase on small business.

According to a press release from Senator Max Baucus of Montana, the chairman of the Finance Committee, the provisions include:

  • Workforce Opportunity: The bill proposes to extend "Work Opportunity" Tax Credit by more five-year and expand to include veterans disabled after the September 11, 2001 attacks. Currently "Work Opportunity" Tax Credit can be claimed by employers who hire disadvantaged workers.
  • Small Business Expensing: The new provision is to allow small business to deduct up to $108,000 of qualified equipment or property expenses in the year that the equipment or property is bought. This helps to recover cost more quickly.
  • Allows leaseholders and restaurants to quickly recover the cost of improvements to their establishments, over 15-years rather than over the normal 39-year recovery period.
  • Allowing a larger group of small business ($5 million in gross receipts) to use the simplified ash-basis accounting method.

    • The bill is going to the Senate most likely in the week of January 29.

    What do you think? Do you think these provisions will be sufficient to cover the extra burden on small business due to minimal wage increase ?. Which provision is good and which one is bad for small business ?




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Last Updated ( Thursday, 24 January 2008 )
 
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