SMALL BUSINESS JOBS BILL TO BRING IMMEDIATE RELIEF TO TEXAS
Bill signed into law focuses on tax breaks, small business support to spur job creation
Washington,
Sep 28 -
Congressman Henry Cuellar (TX-28) announced that a $30 billion-lending fund to increase lending to small businesses became law yesterday. The legislation also contains nearly $12 billion in tax cuts for small businesses.
The $30 billion in funds, administered by the Treasury Department, will be distributed to neighborhood and community banks who can make new loans to small businesses with incentives such as loan limit increases and loan guarantee extensions for loan programs. During the economic downturn, small businesses have had severe difficulty in securing loans after the financial crisis, a key contributing factor to the high rate of joblessness.
“Ensuring a steady flow of credit for our small businesses will generate more jobs and spur economic growth” said Congressman Cuellar. “Texas is home to 2.1 million small businesses, second in the nation and 98.7% of employers are small firms. In the face of tight credit markets and decreased lending, this new law will help create Texas jobs.”
The Small Business Jobs law also lowers tax burdens on small businesses. Specifically, it will:
· Double small business expensing to $500,000 for immediate write offs of capital investments, such as equipment and machinery.
· It helps small business investors by offering zero capital gains taxes on small business investments.
· Reduces taxes on small business by allowing them to “carry back” general business tax credits to offset taxes from previous years – up to five.
· Gives small businesses general business tax credits to free up capital for expansion and job growth and it expands the purchases that qualify for expensing to include certain types of real property, such as leasehold, retail and restaurant improvements.
· Expands certain SBA lending programs to create greater loan opportunities.
· Extends bonus depreciation, allowing businesses to immediately write off 50 percent of the cost of new equipment investments in 2010.
· Doubles to $10,000 the tax deduction for start-up expenditures for entrepreneurs looking to launch a new venture.
Congressman Cuellar also authored an amendment, included in the legislation, to ensure high-unemployment areas are taken into consideration when new funds are distributed.
“As a former small business owner, I know that small businesses are a key engine of job growth and my amendment will give small businesses the resources they need in places where they need it most,” said Congressman Cuellar.
H.R. 5297, passed the Senate by a vote of 61-38, passed the House by a vote of 237-187 and was signed into law by President Obama yesterday. H.R. 5297 is endorsed by the National Small Business Association, the Small Business Majority and the Independent Community Bankers of America.
Congressman Henry Cuellar is a member of the U.S. House Homeland Security, Agriculture, and Oversight & Government Reform Committees in the 111th Congress. Accessibility to constituents, education, health care, economic development, and national security are his priorities. Congressman Cuellar is also a Senior Whip and member of the Blue Dog Coalition
