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.
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