Late last week Sen. Olympia Snowe (Maine) introduced a bill that, if passed, would extend some of the tax-break provisions included in the Creating Small Business Jobs Act of 2010. Among other extensions (outlined below) the proposed legislation extends the availability of the 2010 Act’s increase in the amount of the deduction allowed for business start-up expenditures (from $5,000 to $10,000), allowing small business owners to take an immediate $10,000 deduction against qualifying start-up costs.
Sen. Snowe’s bill is currently with the Senate Finance Committee . . . I’ll keep you updated on its progress.
The bill proposes extensions of the following provisions of the 2010 act:
- Extension of temporary exclusion of 100 percent of gain on certain small business stock.
- Extension of 5-year carryback of general business credits of eligible small businesses.
- Extension of alternative minimum tax rules for general business credits of eligible small businesses.
- Extension of temporary reduction in recognition period for built-in gains tax.
- Extension of increased expensing limitations and treatment of certain real property as section 179 property.
- Extension of bonus depreciation.
- Extension of special rule for long-term contract accounting.
- Extension of increased amount allowed as a deduction for start-up expenditures.
- Extension of allowance of deduction for health insurance in computing self-employment taxes.
Find Sen. Snowe’s proposed bill here.
Find the IRS’s explanation of the 2010 Act’s credits here.