Congressman Edolphus "Ed" Towns (D-NY10) is co-sponsoring H. R. 4032, the Help Entrepreneurs Create American Jobs Act, which would permanently double the amount of start-up expenses entrepreneurs can deduct from their taxes from $5,000 to $10,000. The bill would offer an immediate incentive to entrepreneurs in Brooklyn and elsewhere to invest in starting up a new small business.
"We need to help small business get up and running by reducing their tax burden," Congressman Towns stated. "This bill will help Brooklyn's entrepreneurs by making permanent increases in tax deductions for small businesses seeking to get started. The more small businesses we help get started now, the sooner they will become the employers of the future."
The bill, introduced by Rep. Henry "Hank" Johnson (D-GA4), would also increase the threshold for the deductions phase-out from $50,000 to $60,000. The bill is designed to lessen the tax burden on new small businesses to help them through their first year. While a typical business can deduct its ordinary business expenses in the year the expenses are paid, a start-up business is currently limited as to how much and when it can deduct start-up expenses.
The bill has received the support of the National Federation of Independent Business (NFIB), the National Association for the Self-Employed, and the National Small Business Association among others.