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WASHINGTON, D.C.-Congressman Allen Boyd (D-North Florida) today supported nearly $2 billion in tax relief for small businesses with the passage of the Small Business Tax Relief Act (HR 976). Congressman Boyd is an original cosponsor of this bipartisan legislation, which extends critical tax provisions for small businesses.
"I am proud to support this bill, which will strengthen opportunities for our small business owners," said Congressman Boyd. "Small businesses across North Florida are the backbone of our communities as they provide goods, services, and countless jobs. The Small Business Tax Relief Act will help our small businesses continue to grow and hire new workers to keep our economy strong."
Additionally, the tax cuts in the Small Business Tax Relief Act are paid for as required by the new pay-as-you-go (PAYGO) rules. The legislation costs $1.3 billion over the next 10 years, but this cost is completely offset by revenue-raising provisions. Among other things, this legislation would:
- Help small businesses invest in new equipment and more easily afford large capital expenses. It extends small business expensing for one year, increasing both the amount small businesses can deduct from their taxes (from $112,000 to $125,000) and the number of small businesses that can take these deductions (by increasing the income limits for businesses taking the deduction from $450,000 to $500,000).
- Extend the Work Opportunity Tax Credit (WOTC) for one year and expand it to cover disabled veterans.
- Allow businesses to continue claiming the full tip credit despite any increase in the federal minimum wage. It achieves this by freezing the minimum wage level for purposes of calculating the credit. Without this provision, the credit received by restaurant employers will decrease when the federal minimum wage rate increases.
- Simplify tax filing requirements for businesses owned jointly by husbands and wives.
- Waive individual and corporate alternative minimum tax (AMT) limits on the WOTC.
"This legislation is a prime example of what is possible when Democrats and Republicans work together to find common ground on the challenges that we all face," Boyd stated. "Through bipartisan cooperation, we have passed legislation that will help our small businesses without increasing our budget deficit. As a vocal proponent of PAYGO, I'm pleased that we have adhered to this common sense rule in this legislation. I look forward to much more legislation that reflects the spirit of cooperation, fiscal discipline, and progress that we have seen here today."
The Small Business Tax Relief Act is expected to be included with the legislation passed by the House last month that would raise the federal minimum wage from $5.15 to $7.25 per hour.
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