U.S. House passes Small Business Bill
September 23, 2010
|The U.S. House of Representatives voted Thursday, in favor of a bill which could bring tax credits to small business and improve access to capital.|
Senators passed the bill last week after a month of partisan bickering.
At the core of the bill is the creation of a $30 billion lending facility that would direct taxpayer money to regional banks on the condition they lend it to small businesses.
Banks would have to volunteer to participate in this program, and the rate of interest they are charged on the public funds would depend on how much they increased their small business lending.
The bill also includes about $12 billion in tax breaks, including the ability to write-off of 50% of new equipment purchases in 2010 starting immediately for small and large businesses. It would double, to $500,000, the amount of new investment that small businesses are allowed to expense in 2010 and 2011.
The legislation also allows the self-employed to deduct health insurance costs for themselves and their families. It also removes employer-provided cellphones from a list of items that can be taxed as fringe benefits.
It's scheduled to be signed into law by President Obama on Monday.