Bennet: Eight Tax Cuts Effective Today for Colorado Small Businesses

President Signs Bipartisan Small Business Jobs Act

Washington, DC – Michael Bennet, U.S. Senator for Colorado, released the following statement on the bipartisan Small Business Jobs Act, which was signed into law by the President today, making eight new pro-business tax cuts effective immediately.

“At a time when small businesses across Colorado need all the support they can get to make it through this difficult economy, these new tax cuts will provide immediate help,” Bennet said. “We need to support our small businesses and entrepreneurs and the jobs they create.  This bill will help get the flywheel spinning again so our small businesses have the tools they need to grow, create jobs and help our economy recover.  It is unfortunate that this important help was blocked by a minority of Senators for months when it could have been helping small businesses in cities and towns throughout Colorado.”

These eight small business tax cuts, effective today, will providing immediate incentives to invest:

1.      Zero Taxes on Capital Gains from Key Small Business Investments

2.      Extension and Expansion of Small Businesses’ Ability to Expense Capital Investments Immediately

3.      Extension of 50% Bonus Depreciation

4.      A New Deduction of Health Insurance Costs for the Self-Employed

5.      Tax Relief and Simplification for Cell Phone Deductions

6.      An Increase in the Deduction for Entrepreneurs’ Start-Up Expenses

7.      A Five-Year Carryback of General Business Credits

8.      Limitations on Penalties for Errors in Tax Reporting That Disproportionately Affect Small Business

The Small Business Jobs Act, along with providing substantial tax relief for small businesses, also includes improvements and expansions to SBA lending programs, including provisions that Bennet has backed.  The bill also calls for the creation of a $30 billion lending facility for community banks to expand lending to small businesses struggling to obtain loans as credit markets have dried up.