U.S. Senator Ken Salazar

Member: Finance, Agriculture, Energy, Ethics and Aging Committees

 

2300 15th Street, Suite 450 Denver, CO 80202 | 702 Hart Senate Building, Washington, D.C. 20510

 

 

For Immediate Release

January 16, 2007

CONTACT:    Cody Wertz – Comm. Director

                        303-455-7600

Andrew Nannis  – Press Secretary

                        202-224-5852


  Sen. Salazar Introduces Small Business Tax Incentives to Balance Impact of Minimum Wage Increase

WASHINGTON, D.C. – United States Senator Ken Salazar today introduced the “Business Relief and Incentives for Small Entrepreneurs Act of 2007” – or “The Business RAISE Act” – to balance the needs of small business with an expected increase in the minimum wage.

“We must ensure that in our enthusiasm to increase the minimum wage we do not unnecessarily harm small businesses,” said Senator Salazar. “An increase in the minimum wage is long overdue, but small businesses are the engine of our economy. These tax incentives strike a balance between the need to protect small business while we help working families.”

The Business Raise Act contains two sections. The first would allow business owners to write off the cost of two specific kinds of construction over a period of 15 years: (1) improvements to retail property that they own (rather than lease), and (2) the cost of restaurant construction/renovation. Currently, these improvements must be written off over a period of 39 years. The reduced timetable is more realistic and will stimulate investment, particularly benefiting small business construction and renovation.

The second section would provide tax incentives for businesses to hire disabled veterans, and is identical to Senator Salazar’s “Warm Welcome Home Act” from the 109th Congress. Specifically, it would expand the Work Opportunity Tax Credit (WOTC) to include all disabled veterans. Under current law, WOTC applies only to disabled veterans who are on food stamps and who have completed rehabilitation in a state or federal veterans’ affairs agency.

“I support an increase in the federal minimum wage; American workers deserve better,” added Senator Salazar. “But we must also provide small businesses with tax relief in order to cushion the blow from a minimum wage increase. These businesses are the lifeblood of Colorado’s and our nation's economy, and we must ensure they can continue to serve this vital purpose.”

A version of both of Senator Salazar’s provisions will be included in the Finance Committee package that is scheduled for mark up tomorrow.

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