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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 http://www.sba.gov/jobsact/.