Senate Attempts Adding Small Business Perks In Final Stimulus Package
We’ve heard it Ad Nauseum over the past few days. The stimulus package doubles the amount Small businesses can expense in the purchase of equipment. That is the biggest (and really the only) advantage to small business in the stimulus package as it came out of the House. But now it’s in the Senate. According to a recent Washingtonpost.com report, there may be some more goodies in store for small business in the Senate version.
That’s good news, because the existing package falls short in several areas. According to the report,
“The National Federation of Independent Businesses criticized the economic stimulus plan for failing to include expansion of the net operating loss carry-back provision from two years to five years. The group explained that lengthening that provision would enable business owners to balance out net losses over years when the business has a net operating gain. Spreading out this tax liability helps a business to decrease the impact of a couple of bad years.
The National Small Business Association is on board with most of what the NFIB is requesting, but is also pushing for a research and development tax credit that expired Dec. 31, 2007 to become permanent – something long sought by technology and science firms.
Many small business groups are clamoring for something recommended this year by an independent adviser to the IRS – some sort of standard home-office deduction.”
As the stimulus package makes its way into the Senate, it will be helped along by Senator John Kerry who who heads up the Small Business and Entrepreneurship Committee. According to the Post, Senator Kerry has introduced legislation he hopes will be included in the Senate Finance Committee’s stimulus package. It goes on to detail this legislation–
“Kerry’s bill, S. 2553, would provide tax incentives to small businesses, reduce fees on loans and double funding for microloans and would increase from $125,000 to $200,000 the amount small businesses can write off their taxes for new investments for 2008. The bill also includes what small business groups have been requesting – an increase from two years to five years the net operating carry-back period for losses arising in taxable years 2007 and 2008.
Kerry’s measure also would reduce fees on borrowers and lenders to make credit more affordable and provide incentive for lenders to make small business loans. The bill will provide additional funding to leverage about $20 million in microloans. The average microloan is about $13,000, according to the Small Business Administration.”
Is this just what the doctor ordered for the economy. or are lawmakers missing the mark somewhere? Is Senator Kerry influential enough to get these additional measures pushed through to inclusion in the final bill President Bush signs? All of these questions remain unanswered. But we can know that any single one of these provisions would take some of the pressure off of small businesses at a time when they really need it. In spite of possible dark days ahead for the American economy, these possible provisions provide a silver lining for the small business owner.
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