Today -- U.S. Rep. Ed Perlmutter (CO-07) encouraged Coloradans to make sure they are maximizing the many tax cuts, credits and exemptions made available since 2009. Instead of tax cuts focused only on the wealthiest 1%, these tax cuts are broad based and focused on helping the middle-class - from investing in a small business, to buying a home or making it energy efficient, to sending your children to college to buying a car.
"I want to ensure my constituents benefit from all the tax cuts made available since 2009. I am proud to support so many different tax benefits for hard working families and small businesses the past year and a half," stated Perlmutter. "If you are not sure about whether you qualify for these tax benefits, I encourage you to file an extension today and consult a tax professional. During these tough economic times people need to be aware of the various tax breaks available and most importantly they need to use them."
Colorado & CD 7 Specific Tax Statistic Benefits:
* Over 258,000 families in CD 7 benefitted from the Making Work Pay Tax Credit -- up to $400 for individuals and $800 for families in 2009.
* Over 700,000 Coloradans received one time $250 payments in 2009 totaling over $175 million. The payments went to individuals who receive social security, supplemental security income (SSI), railroad retirement and veterans' benefits.
* First Time Homebuyers Credit for houses purchased in 2008 & 2009 -- approximately 33,400 Coloradans filed for this tax credit totaling over $240 million.
"One of my biggest priorities since taking office is to change the focus of our tax policy from the wealthiest 1% to the hard working people in the middle. These tax cuts will benefit individuals and small businesses. Small businesses employ the most people, and they are the engine driving our economy. I'll continue to fight for policies to strengthen small businesses and the middle-class," stated Perlmutter.
Business Tax Incentives to Create Jobs ($10 billion over 10 years):
* Bonus Depreciation: Helps businesses quickly recover costs of new capital investments by extending the increased bonus depreciation for businesses making investments in new plants and equipment in 2009.
* Small Business Expensing: Spurs small business investment by extending small business expensing, doubling the amount small businesses can immediately write off their taxes for capital investments and purchases of new equipment made in 2009 ($125,000 to $250,000). This write-off phases out completely for investments over $800,000 (up from $500,000).
* Buying Back Debt: Provides assistance to companies looking to reduce their debt burdens by delaying the tax on businesses that have discharged indebtedness, which will help these companies strengthen their balance sheets so they can invest in job creation.
* Small Business Loss Carrybacks: Increases cash flow for small businesses by providing a 5-year carry-back of net operating losses (NOLs). This would allow many small businesses to write off losses incurred in 2008 against taxes assessed over the previous 5 years (current law limits NOL carry-back to the previous 2 years), thereby reducing their taxes this spring.
* Small Business Investment: Spurs investments in small businesses by cutting the capital gains tax on investors in small businesses who buy stock (in the next two years) and hold it for more than 5 years.
* Jobs for Recently Discharged Unemployed Veterans and Disconnected Youth: Creates jobs with business tax credits for hiring recently discharged unemployed veterans who have been out of work or youth who have been out of school for 6 months prior to hire.
"Tax incentives to promote renewable energy and energy efficiency are good for national security, good for the climate and good for jobs. Promoting energy efficiency in the buildings we live and work in is good for the bottom line and is the low hanging fruit when it comes to saving money," stated Perlmutter.
Renewable Energy and Energy Efficiency Tax Incentives to Spur Energy Savings and Create Jobs ($20 billion over 10 years):
* Energy Efficient Home Tax Credits: Promotes energy efficient investments in homes by extending and expanding tax credits through 2010 for investments such as new furnaces, energy-efficient windows and doors, and insulation. Increases the credit from 10 percent to 30 percent of the cost of the investment and raises the credit cap from $500 to $1,500, saving American families money on their energy bills.
* Plug-in Hybrid Tax Credit: Spurs the next generation of cars by providing a tax credit of up to $7,500 for families who purchase plug-in hybrid and all-electric vehicles.
* Tax Credit for Renewable Energy: Extends for three years the production tax credit (PTC) for electricity derived from wind (through 2012) and for electricity derived from biomass, geothermal, hydropower, landfill gas, and waste-to-energy facilities (through 2013).
* Easing Credit Crunch for Renewable Energy: Provides grants of up to 30% of the cost of building a new renewable energy facility in 2009 and 2010 in lieu of current law tax credits, or permits facilities to claim a 30% investment tax credit instead of a production tax credit, to address the current credit crunch for investments in renewable energy.
Business Tax Benefits under the Hiring Incentives to Restore Employment (HIRE) Act
* Tax incentives for businesses to spur immediate job growth. A new payroll tax exemption would create a common-sense, targeted, and effective way to encourage employers to begin hiring unemployed workers today and is estimated to spur about 300,000 new jobs.
* Payroll Tax Exemption. Provides businesses with an exemption from Social Security payroll taxes for every worker hired in 2010 who has been unemployed for at least 60 days. (The maximum value of this incentive is $6,621, which equals to 6.2 percent of wages paid in 2010 up to the FICA wage cap of $106,800.) The longer that a business has a new qualified worker on its payroll, the greater the tax benefit. The House amendments incorporate an IRS fix to make sure that small businesses can take advantage of the payroll tax holiday.