SOUTH BEND -- A federal tax break intended to help small businesses purchase and write off necessary equipment drew accolades from local businessmen Thursday.

Tom Kinnucan, president of Hoosier Tank and Manufacturing Inc., 1710 N. Sheridan, and Bill Welsch, executive vice president, praised the legislation, which they said will help their business stay competitive in the world market.

Hoosier Tank manufactures the compressed air tanks used on big trucks to operate their air brakes. The company has 77 employees.

The legislation provides a one-year extension of previous legislation that allows small business owners to buy and write-off for tax purposes equipment used in their trade or business.

U.S. Rep. Joe Donnelly, D-2nd, an original co-sponsor of the legislation, noted that it increases two aspects of the earlier bill.Previously, businesses that earned $450,000 or less could deduct up to $112,000 in equipment costs. The new legislation increases the income limit to $500,000 and the allowable deduction to $125,000.

"We strengthen our economy when we facilitate the growth of small businesses across the 2nd District," Donnelly said.

In addition to the tax break, the legislation also expands the Work Opportunity Tax Credit, which provides incentives for employers to hire at-risk youths, disabled veterans and others who have trouble getting a job.

Donnelly said the cost of the $4.84 billion bill was offset by enacting several provisions intended to crack down on tax fraud and abuse, including new penalties for those who file claims for refunds without a reasonable basis.