The House of Representatives passed the Small Business Jobs and Credit Act on 09/23/10. The legislation, H.R. 5297, takes another step toward helping small businesses, creating jobs and fueling economic recovery. The legislation is expected to be signed into law by the President.
Under the bill’s provisions, much-needed lending will be increased to America’s 27 million small businesses that are facing a lack of credit and tight lending standards. The bill offers eight new tax incentives to companies helping them expand and hire workers. It also keeps jobs in America by closing tax loopholes that currently reward corporations shipping jobs overseas. It is expected to create 500,000 jobs.
“Small businesses and our workers remain the backbone of a strong economy,” said California Congressman Dennis Cardoza. “Increased access to capital and new tax cuts will not only keep jobs in America, it will allow small businesses to grow and flourish. I will continue to support common-sense legislation that helps creates jobs in the Valley and provides economic relief for my constituents.”
Among the mechanisms in the bill:
• A 100-percent exclusion of small business capital gains to spur investment in small businesses.
• An increase in the tax deduction for start-up expenditures to encourage the formation of new small businesses.
• A $30 billion Small Business Lending Fund to provide community banks with capital to increase small business lending.
• An extension of bonus depreciation and the doubling of expensing for small businesses.
• Expansion of access, with lowered costs, for small businesses accessing SBA loans.
Under the PAYGO Congressional spending law enacted earlier this year, the legislation is fully paid for and will not add a single dime to the deficit. The Small Business Jobs Act is supported by a host of business organizations including the Independent Community Bankers of America, American Bankers Association, National Small Business Association, Small Business Majority, National Retail Federation, National Restaurant Association, and Hispanic Chamber of Commerce, among others.