U.S. Senator Amy Klobuchar today released a county-by-county report on how the small business tax cut legislation being considered in the Senate this week could impact small businesses across Minnesota. According to the report, compiled by the U.S. Congress Joint Economic Committee, the Small Business Jobs and Tax Relief Act could help more than 125,000 small businesses in Minnesota grow and create good jobs. The bill would give tax breaks to small businesses that hire new workers and also allow businesses to write off, or depreciate, the entire cost of major purchases completed this year.
"Small businesses are the engine of job growth and economic activity in Minnesota and across the country," Klobuchar said."This legislation could help more than 125,000 small businesses across Minnesota grow and spur economic growth around the state, and I will continue to work to move the bill forward and help local businesses succeed."
The Small Business Jobs and Tax Relief Act would provide a 10 percent tax credit on new payroll in 2012. The amount of the credit would be capped at $500,000, helping ensure the benefits of the bill would be focused on America's small businesses.
The legislation would also encourage business investment and growth by allowing businesses to write off, or depreciate, the entire cost of major purchases made this year. Current law requires major purchases including equipment and buildings to be written off over many years. This means that tax savings from major investments in the business are spread out over a number of years, making it tougher for businesses to expand and create jobs.
The full report on the impact of the Small Business Jobs and Tax Relief Act can be viewed here. The report was conducted by the U.S. Congress Joint Economic Committee.