AWI e-briefs - 10/07/2010 (Plain Text Version)

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Federal Scene

Small Business Jobs Act Benefits Offer Help

On September 27, President Obama signed into law legislation (H.R. 5297) that gives small businesses $12 billion in tax breaks beginning this year. The bill also establishes a $30 billion Small Business Lending Fund.

The bill that passed the U.S. House of Representatives on a vote of 237-187 (yeas-nays) is designed to aid small businesses hurt by the recession. The Senate followed with passage by a 60-38 vote.

The bill is designed to:

  • Help small businesses access capital through a $30 billion Small Business Lending Fund;
  • Allows addition write-offs for purchases of equipment and machinery;
  • Doubles the amount of start-up costs that can be deducted by taxpayers starting a small business; and
  • Allows self-employed taxpayers to deduct the cost of health insurance for their families when calculating self-employment taxes for 2010.

For a detailed summary of the bill, click here. Also, see the news release issued by the U.S. Senate Committee on Finance with a summary of the major provisions.

The new law also increases penalties for failure to file Form 1099 reports with the Internal Revenue Service (IRS) . A number of organizations, including the American Subcontractors Association, are seeking repeal of the new Form 1099 reporting requirements enacted earlier this year as part of the landmark Patient Protection and Affordable Care Act. The new requirements, scheduled to take effect in 2012, will force all businesses and tax-exempt organizations to issue a Form 1099 to vendors from whom they buy goods totaling $600 or more annually.

The American Institute of Architects applauded the Congressional action and announced it will continue to press Congress for additional relief affecting credit access, and healthcare.  [Return to top]