President Obama Signs Small Business Bill
The push for the Small Business Jobs Act (H.R. 5297) ended when President Obama signed the bill into law on September 27, giving Democrats a key policy victory.
The legislation creates a lending fund for small businesses while offering several tax incentives. Among the bill’s provisions are:
- Reinstatement of the 50 percent depreciation bonus for 2010, retroactive to the beginning of the year;
- Creation of a lending fund to provide capital for small businesses; and,
- An increase in Sec. 179 expensing levels to $500,000 (with a phase-out threshold of $2 million) for 2010 and 2011
Section 1099 Reform Unsuccessful
Unfortunately, attempts to repeal the IRS 1099 requirement from the health care law failed. The provision, which goes into effect in 2012, subjects businesses to data collection and IRS filing burdens on virtually all non-credit card purchases totaling $600 or more. ARSA recently joined hundreds of businesses and associations encouraging the repeal of the tedious requirements.
The Senate voted on two proposals: an amendment to repeal the 1099 mandate and one that would have increased the reporting threshold to $5,000 and eliminated the new filing requirement for businesses with fewer than 25 employees. Both amendments failed to garner the 60 votes needed for adoption.