Gillibrand-Sponsored Legislation to Cut Taxes for Small

Press Release

Gillibrand-Sponsored Legislation to Cut Taxes for Small

Today, local Congresswoman Kirsten Gillibrand announced that legislation she sponsored - the GROW (Giving Resources and Opportunities to the Workforce) Act [H.R. 5107] -was partially included in the final Economic Stimulus Package that was signed into law by the President. The GROW Act will allow small businesses to have the necessary resources to increase hiring and investment in their community.

"The Economic Stimulus Package and the GROW Act will improve our economy during this time of economic uncertainty. Tax cuts for small businesses are a key component for creating jobs, and I am pleased that the President signed provisions from the GROW Act into law," Congresswoman Gillibrand said.

During an economic downturn, businesses are less likely to put more money into their business because of concerns about consumer spending. The bipartisan Economic Stimulus Package doubles the amount small businesses can immediately write off their taxes for capital investments made in 2008 from $125,000 to $250,000, for purchases of new equipment of up to $800,000 (up from $500,000). Additionally, the economic package provides immediate tax relief for all businesses to invest in new plants and equipment by speeding up depreciation provisions, so that firms can write off an additional 50 percent for investments purchased in 2008.

Congresswoman Gillibrand continued, "Small businesses create two-thirds of all new jobs in America, and the GROW Act will allow them to weather any economic uncertainty. Congress and the President have a responsibility to the American people to correct the economy and make it work for all Americans, and I look forward to passing a bill that will make America stronger."

In Congress, cutting taxes for small business owners has been a priority for Representative Gillibrand. She was a lead sponsor of the Small Business Tax Relief Act of 2007 [H.R. 976], which was signed into law that provides five critical tax cuts for small business owners. In addition, she has been a strong advocate for permanently fixing the Alternative Minimum Tax (AMT), which disproportionally affects small business owners.

Joining Gillibrand as original sponsors of the bill are, Rep. Paul Hodes (NH-02), Rep. John Yarmuth (KY-03), and Rep. Zack Space (OH-18). The bill was authored by fellow Blue Dog Caucus member, Rep. Melissa Bean (IL-08).

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