President Signs Small Business Jobs and Tax Relief Bill


On Monday, President Barack Obama signed into law the Small Business Jobs Act of 2010 (HR 5297). The bill, which Congress passed last week, expands loan programs through the U.S. Small Business Administration (SBA), strengthens small business preference programs for federal government projects, provides incentives for exporters, offers a variety of small business tax breaks and includes some revenue raisers. For coverage of what is in the law, see “Small Business Stimulus Passes Congress.”

 

Many of the provisions of the bill are effective immediately, including:

 

  • Increased section 179 expensing.
  • Extension of 50% first-year bonus depreciation.
  • Zero tax rate on capital gains from IRC § 1202 small business stock.
  • Increased section 195 deduction for trade or business startup expenses.
  • Five-year carryback of general business credits.
  • New deduction for self-employed individuals’ health insurance costs.
  • Removal of cell phones from the definition of listed property.
  • Limitations on section 6707A penalties for failure to disclose a reportable transaction.


More from the JofA:

 Find us on Facebook      Follow us on Twitter

 

SPONSORED REPORT

Cybersecurity threats proliferating for midsize and smaller businesses

This report details how SMBs can properly protect private information from breaches, design and implement a cybersecurity policy, and create safeguards for training and education.

QUIZ

News quiz: Senate health care bill in the spotlight

Reports related to the Republican bill to repeal many provisions of the PPACA, other tax issues, and the giant AICPA ENGAGE Conference offered a diverse reading list for June. See how much you know about recent news with this short quiz.