Today Rep. Anna G. Eshoo (D-Palo Alto) voted for H.R. 4849, the Small Business and Infrastructure Jobs Act, the latest in a series of measures designed to create jobs and strengthen the economy. The legislation extends bonds and emergency provisions from last year's American Recovery and Reinvestment Act and provides tax cuts for small businesses and entrepreneurs.
"Last year, the Recovery Act created or saved 256,000 jobs in California," Rep. Eshoo said. "This bill will extend some of the most effective Recovery Act provisions so we can continue to spur economic growth and create new jobs this year."
H.R. 4849 extends the following provisions from the Recovery Act:
* Build America Bonds, which provide funding for state and local governments at lower borrowing costs than traditional tax-exempt bonds. According to Time Magazine, these bonds are "one of the economic recovery efforts biggest successes." In the past year, Build America Bonds provided more than $185 million to cities and school districts in the 14th Congressional District.
* Recovery Zone Bonds, which are targeted bonds for urban areas with nationally high unemployment. California received $1.2 billion of these bonds last year.
* TANF Emergency Fund, which helps states establish or expand subsidized jobs programs. This program has accounted for 160,000 job placements in 35 states, including California, but would expire for many states in April or June without the extension.
"Federal funds have helped our communities keep schools open and public transportation running despite the economic crisis and the state's budget crisis," Rep. Eshoo said. "We must continue to support these necessary services, while also encouraging start-ups and small businesses-the private industries that will create the jobs and revenue of the future."
The bill provides the following tax incentives to small businesses and entrepreneurs:
* Exclusion of small business capital gains. The bill excludes 100% of capital gain income for stock in small businesses, to incentivize new investments.
* Deduction for business start-up expenditures. The bill increases the amount deductible for start-up expenses for new business, from $5,000 under current law to $20,000. This is designed to assist small business owners in overcoming barriers to beginning a business, hiring new workers, and expanding.
The bill passed the House by a vote of 246-178.