Two bills were filed to relieve business owners of the tax burden. Will these help?
Rep. Jason Saine, chairman of the House Finance Committee filed two bills to help small business owners. Each bill allows for the first $25,000 to $50,000 of income to be deducted on state income taxes if certain conditions are met: If the business does not have a gross income of more than $800,000 in HB 934, Tax Relief Act of 2015; if the business owner files a single taxpayer return, the first $25,000 of business income may be deducted; if married filing jointly, the first $50,000 of business income may be deducted from the state tax return.
A similar provision was passed in 2010 effective for the 2011 tax year, which saved business owners between $3,500 to $5,000 savings to their businesses. The 2011 provision was repealed in 2012 to help fund the Tax Reform Act reducing corporate and personal tax rates in addition to repealing the estate tax. NFIB helped get the 2011 legislation passed and strongly supports Rep. Saine’s HB 934.
