Act signed into law earlier this fall includes an estimated $12 billion in savings through eight tax provisions encouraging small business investments. These tax savings are currently scheduled to expire on December 31, 2010. Businesses must act this month to secure the much needed tax relief.
Delta Regional Authority (DRA) Federal Co-Chairman Chris Masingill urged small business owners “not to let the time run out on small business tax relief.”
“With small businesses in the Delta facing so much economic uncertainty, the Small Business Jobs Act offers them a vital lifeline through $12 billion in tax cuts and greater assistance accessing capital,” said Senator Mary Landrieu, Chair of the Senate Committee on Small Business and Entrepreneurship and a lead sponsor of the legislation.1. The highest small business expensing limit ever, of $500,000;
2. Carry-back provisions on net operating losses of up to 5 years;
3. Accelerated/bonus depreciation;
4. Zero capital gains taxes for those who invest in small businesses;
5. Increased deductions for start-ups;
6. Deductions for employer-provided cell phones;
7. Deductions for health insurance costs for the self-employed; and
8. Limitations on penalties for errors in tax reporting that disproportionately affect small business.
Small business owners with questions can visit the Small Business Administration’s local resource page (http://www.sba.gov/localresources/index.html) to locate a district office or Small Business Development Center. Or, Kemp Morgan, the Authority’s head of project development, can be reached at (662) 624-8600, ext 18 or firstname.lastname@example.org.