NASE in the News

Small Business Jobs & Credit Act To Be Signed Into Law By President Obama

Self-Employed To Receive Health Care Cost Assistance, Access To Capital, Other Tax Incentives

Washington, D.C., September 23, 2010 – The National Association for the Self-Employed applauds the U.S. House of Representatives for its quick action regarding approval of the Small Business Jobs and Credit Act. The legislation provides a key health tax deduction for the self-employed, though only for one year, that the health care bill failed to offer.

“Finally Congress has provided some tax relief that America’s smallest businesses will be able to see benefit their bottom line.  The NASE is thrilled that a longtime priority for the self-employed has been realized with passage of this legislation, even if it is only temporary relief,” remarked NASE Executive Director Kristie Arslan. “A top focus from here will be to make permanent the ability of sole proprietors to deduct their health costs as a business expense, as all other businesses do.”

Key provisions in the bill that will assist the self-employed include:

• A one-year tax deduction for sole proprietors on health care costs for payroll tax purposes on their 2010 tax returns
• A temporary increase in the maximum deduction for business start-up expenditures in 2010 and 2011 from $5,000 to $10,000, subject to a $60K threshold
• Extension of the Sec. 179 expensing provision that allows small businesses to immediately expense up to $500,000 (up from $250,000) for tangible personal property and up to $250,000 for improvements to leasehold property and retail property
• Creation of a $30 billion Small Business Lending Fund to encourage small local banks and credit unions to increase loans to small businesses