Congressman touts "fiscal cliff" deal benefits for small businesses
U.S. Rep. Bill Owens, D-Plattsburgh, wants to remind everyone that averting the "fiscal cliff" was good for small businesses.
While the congressman stressed the need to still cut federal spending, he highlighted the measures included in the compromise passed last week that are designed to help small businesses.
“As Congress looks to cut its own costs in the months ahead, businesses should stay in touch to let us know when government overreach is hampering growth,” Owens said in a news release. “Every dollar businesses spend on mandates and paperwork is a dollar that doesn’t go to help create jobs. If I can help reduce these burdens or work with agencies to find solutions, I’m eager to do so.”
In addressing future taxing and spending concerns, he added, “I remain confident we can achieve this in the year ahead if we work in a bipartisan spirit and keep the needs of small business owners in mind as we proceed. Extending certain small business tax relief as part of the fiscal cliff deal was a good first step.”
The extended tax credits included in the compromise are:
· Extension of the popular “New Market Tax Credit” for an additional two years. The program was established in 2000 to spur increased investment into operating businesses and real estate projects, typically in small communities like those in Upstate New York.
· A 100 percent exemption on Qualified Small Business Stock through 2013. This provision applies retroactively to investments made in 2012, creating additional incentive for outside investment in startup businesses in need of capital.
· Extension of 50 percent “bonus” depreciation for businesses on qualified capital assets placed in service before January 1, 2014.
· For S-Corporations, an extension of the five-year built-in gains holding period for tax years beginning in 2012 and 2013. The bill also extends certain basis adjustments regarding stocks of S-Corporations to incentivize charitable contributions.
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