The Senate approved the Small Business Jobs Act Thursday (9/16) offering $12 billion in tax breaks to stimulate investment in small businesses. This is legislation the Associated Equipment Distributors (AED) has been calling for to avert a double dip recession, primarily because it includes reinstatement of the 50% depreciation bonus, and because it has a good chance of being passed this year. The tax break allows additional first-year depreciation of an additional half the purchase cost of business assets such as construction equipment. In the act’s current form, it would apply to all purchases made in 2010.
Bonus depreciation was first extended in 2008 and renewed for 2009, but expired at the end of that year. It was included in the Small Business Lending Fund Act (H.R. 5297), a measure intended to help generate jobs, which had been stalled in the Senate for several weeks. The legislation also creates a lending fund to provide capital for small business investment.
AED's Washington Insights newsletter from September 17 said the House is expected to approve the Small Business Lending Fund Act within the next few days and President Obama has suggested he would sign it into law.
AED created an online tool at AEDaction.org to help users identify and contact House legislators, with suggested wording to encourage them to move the legislation through.
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