Media Center

Press Releases

Congressman Scott Votes to Support Small Businesses

Washington, March 30, 2010

On March 24, Congressman Scott voted for two bills that help small businesses: the Disaster Relief and Summer Jobs Act (H.R. 4899) and the Small Business and Infrastructure Jobs Tax Act of 2010 (H.R. 4849). Both measures passed the House.  In addition to these two bills, Congressman Scott has also supported other measures to help small businesses: The HIRE Act (H.R. 2847), the American Recovery and Reinvestment Act (H.R. 1) and the Health Care & Education Affordability Reconciliation Act (H.R. 4872).  These bills were signed into law. 

 

Assistance for small business from these bills are detailed below.

 

Capital Gains Tax Relief

 

·        Spur Investment in Small Businesses.  Increases the capital gains tax cut for those who invest in small businesses this year.  The bill would exclude 100% of capital gain income for stock in small business purchased from March 15, 2010 to January 1, 2011.  This will spur new investments in small business with new capital they need to grow and hire more workers. –H.R. 4849

·        Small Business Investment:  Spurs investments in small businesses by cutting the capital gains tax on investors in small businesses who buy stock (in the next two years) and hold it for more than 5 years.  –H.R. 1

·        Capital Expenditure Deductions for Small Businesses.  The HIRE Act extends a provision that allows small businesses to write off as much as $250,000 of their capital expenditures in 2010.  Extending this credit gives companies that are considering buying assets like machinery and vehicles an incentive to make those purchases this year. -H.R. 2847

 

Incentives to hire new employees

 

  • Benefits for Small Businesses Who Hire the Unemployed.  The bill offers employers two tax breaks for qualifying new workers hired in 2010.  Under the measure, companies will be exempt from paying their share of Social Security payroll taxes, normally 6.2% of a worker’s wage, for any new worker who was unemployed for the prior 60 days. Each of those new employees retained for a full year would net the company an additional $1,000 back on its 2011 tax return, or 6.2% of the wages paid the employee in 2011, whichever is less.  Businesses may use the incentive to hire an unlimited number of workers. –H.R. 2847

 

  • Jobs for Recently Discharged Unemployed Veterans:  Creates jobs with business tax credits for hiring recently discharged unemployed veterans who have been out of work or youth who have been out of school for 6 months prior to hire. –H.R. 1

 

Small Business Lending

 

  • Incentives for Small Business Administration-backed loans.  Allows the SBA to continue two temporary loan guarantee authorities through the end of fiscal year 2010. This support will make loans more attractive to borrowers and lenders and will free up capital –H.R. 2847

 

  • Extending the Recovery Act small business lending program for another month. That program eliminated the fees normally charged for loans through the Small Business Administration 7(a) and 504 loan programs and increased the government guarantees on 7(a) loans from 75% to 90%. Since its creation, the program has supported nearly $23 billion in small business lending, which helped to create or retain over 560,000 jobs. –H.R. 4899

 

Other Tax Benefits

 

·        Increase in deduction for business start-up expenditures.  Entrepreneurs can deduct up to $20,000 (up from $5,000 in current law) in start-up expenditures in connection with investigating the creation of a business (but not capital or equipment), and more businesses could get the maximum deduction. By allowing entrepreneurs to recover a greater portion of their start-up expenses, the proposal would assist small business owners in overcoming these barriers so they too can focus on hiring new workers and growing their business.  – H.R. 4849

 

·        Bonus Depreciation:  Helps businesses quickly recover costs of new capital investments by extending the increased bonus depreciation for businesses making investments in new plants and equipment in 2009. - H.R. 1

·        Small Business Expensing:  Spurs small business investment by extending small business expensing, doubling the amount small businesses can immediately write off their taxes for capital investments and purchases of new equipment made in 2009 ($125,000 to $250,000).  This write-off phases out completely for investments over $800,000 (up from $500,000). -H.R. 1

·        Buying Back Debt:  Provides assistance to companies looking to reduce their debt burdens by delaying the tax on businesses that have discharged indebtedness, which will help these companies strengthen their balance sheets so they can invest in job creation.  –H.R. 1

·        Small Business Loss Carrybacks:  Increases cash flow for small businesses by providing a 5-year carryback of net operating losses (NOLs).  This would allow many small businesses to write off losses incurred in 2008 against taxes assessed over the previous 5 years (current law limits NOL carryback to the previous 2 years), thereby reducing their taxes this spring.  –H.R. 1

·        Small Business Penalty Relief.  Fixes a tax shelter disclosure penalty (Section 6707A) that has had a disproportionate effect on small businesses. – H.R. 4849


Assistance for Small Business Health Care Costs – H.R. 4872

 

  • Small Business Tax Credits.  The bill includes tax credits that take effect immediately to help small businesses afford health coverage. An estimated 3.6 million small businesses will qualify in 2010. The credits (for up to 35 percent of an employer's contribution to health care in 2010-2013 and up to 50 percent in 2014) will provide an estimated $40 billion in assistance to small businesses over 10 years to make coverage affordable. Tax credits will be provided to 15,100 small businesses in Georgia's 13th District alone.

 

  • Expanded Consumer Choice. The bill will give small businesses better choices by setting up new, simplified marketplaces called insurance exchanges. Small businesses with up to 100 employees will be able to participate in the exchanges and pool together for coverage. Once operational in 2014, the exchanges will maximize small business bargaining power to negotiate better coverage, promote transparency and informed choice, and increase competition to lower rates. Self employed business owners will also be able to participate.

 

  • Employer Contributions.  Businesses with fewer than 50 full-time employees (measured in FTEs) will be exempt from any requirements to contribute toward employees' health coverage. An estimated 96 percent of all firms in America have fewer than 50 employees and would be exempt. Of those businesses with more than 50 employees, another 96 percent already offer health coverage.

  • Bans Health-Related Discrimination. Prohibits insurance companies from denying coverage for pre-existing conditions, ends premium discrimination based on gender and health status, and eliminates lifetime and annual limits on coverage that threaten to bankrupt small business owners and employees. It also strengthens oversight of insurance premium increases, protecting small businesses from arbitrary and unreasonable rate hikes.

 

More resources can be found at the websites below: