More on Small Business Jobs Act provisions
There are a number of provisions within the recently passed Small Business Jobs and Credit Act that are designed to assist small businesses. The act was signed into law on Sept. 27.
For a look at the basic provisions, see Obama signs Small Business Jobs Act into law.
Other provisions include:
* Increases on limits of how much money a company can borrow under various Small Business Administration loan programs.
* $12 billion in tax cuts, including a 100% exclusion of capital gains taxes on small business investments.
* The ability for small buinesses to carry back general business tax credits to offset the tax burden from the previous five years. Small businesses also will be able to use these credits against the Alternative Minimum Tax.
* Boosts the tax deduction for start-up expenses to $10,000, which is twice the current level.
* Allows cell phone costs to be deducted or depreciated like other business property.
* Allows business owners to deduct the cost of health insurance incurred during 2010 for themselves and their family members in the calculation of their 2010 self-employment tax.
The major provision of the act is the establishment of a $30 billion lending program for community banks with less than $10 billion in assets.
"We urge bank regulators to quickly implement the lending program," says Chris Kersting, CEO and president of the Specialty Equipment Market Association, which lobbied in support of the legislation. "It is time to get basic working credit available and help small businesses become an engine of economic recovery."