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Small Biz Tax Cuts, Treasury Programs In Jobs Bill

Oct 21, 2010

Posted by Kristin Oberlander - This post is the third in a four-part series on the Small Business Jobs and Credit Act, signed into law last month. The following is a summary of the tax cuts and other lending  provisions within the law. Thanks to the Small Business Administration for providing this information.

Extension, Expansion of Tax Cuts — 8 Tax Cuts

1. The highest small business expensing limit ever, of $500,000
2. Carry-back provisions on net operating losses of up to 5 years
3. Accelerated/bonus depreciation
4. Zero capital gains taxes for those who invest in small businesses
5. Increased deductions for start-ups
6. Deductions for employer-provided cell phones
7. Deductions for health insurance costs for the self-employed
8. Limitations on penalties for errors in tax reporting that disproportionately affect small business

Treasury Department Provisions

  1. Small Business Lending Fund - $30 billion - The law will provide smaller community banks with low-cost capital (as low as 1%) if they go above and beyond 2009 small business lending levels.
  2. Establishes State Small Business Credit Initiative - The law will provide up to $1.5 billion to support state-run small business lending programs.

Tune in for part four, tomorrow, on education and counseling programs. To read the entire list of small biz provisions in the Jobs Act, visit