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Important Small Business Initiatives Pass House

Press Release

By:
Date:
Location: Washington, DC

Today, Congressman Mike Michaud, a member of the House Small Business Committee, voted to pass the Small Business and Infrastructure Jobs Tax Act (H.R. 4849). Among other provisions, the bill includes 100 percent exclusion of small business capital gains to spur investment in small businesses, and an increase in the tax deduction for start-up expenditures to encourage the formation of new small businesses.

"This bill contains a number of bipartisan proposals to help small businesses grow, hire and continue to fuel our economy," said Michaud. "The higher expense deduction will help lower the cost of starting a new business for Maine entrepreneurs."

The measure passed by the House today includes:

* Increase in deduction for business start-up expenditures. Entrepreneurs can deduct up to $20,000 (up from $5,000 in current law) in start-up expenditures in connection with the creation of a business, such as professional fees (trademarks, copyrights, legal fees), administrative costs (insurance, licenses, permits) and sales and marketing costs (but not capital or equipment). By allowing entrepreneurs to recover a greater portion of their start-up expenses, the proposal would assist small business owners in overcoming these barriers so they too can focus on hiring new workers and growing their business.

* Increases the capital gains tax cut for those who invest in small businesses this year. The bill would exclude 100% of capital gain income for stock in small business purchased from March 15, 2010 to January 1, 2011. This will spur new investments in small business with new capital they need to grow and hire more workers.


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