01/24/2008
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UPDATE: NFIB encourages members to contact their senators and urge them to quickly pass an economic stimulus similar to the agreement reached by House leaders and the White House. Please call 202-224-3121 and ask to speak to your senator about this important piece of legislation that includes key small business provisions for which NFIB lobbied. |
Stimulus package includes key provisions NFIB lobbied for to assist small business owners
CONTACT: Melissa Sharp, 202-314-2068
WASHINGTON, D.C.--Dan Danner, executive vice president of the National Federation of Independent Business, the nation's leading small business advocacy organization, issued the following statement in reaction to the economic stimulus package deal reached today:
"Over the past several weeks, NFIB has worked with Members of Congress and the White House to ensure that small businesses would be a primary focus as Congress moves forward with an economic stimulus plan. We are very pleased that the deal announced today includes many of the key tax provisions which NFIB listed as our top priorities for any economic stimulus package."
Key provisions included in the economic stimulus deal:
- One of the most important provisions included in the stimulus package is increasing the dollar amount for small-business expensing limits. This will allow small-business owners to immediately write off business purchases and will help small-business owners expand their businesses. Allowing immediate expensing is an incentive for small-business owners to make investments in their business and can be more valuable than depreciating the investment over a long period of time.
- Another key provision included in the economic stimulus package is the 50 percent bonus depreciation deduction. This proposal provides an additional one-year depreciation deduction value to 50 percent of the value of the property. Bonus depreciation is an incentive for businesses to invest in their business now, providing an immediate deduction for half the cost of the investment.
"These provisions and others included in the stimulus package will help small businesses retain their current employees, hire new workers and/or purchase needed equipment for their businesses. And by helping small businesses continue to grow and expand, the economy and all Americans will benefit.
"While the economic stimulus package deal reached by the U.S. House and White House contains important provisions for small business, one key item not included in this deal is expanding the net operating loss carryback provision from two years to five years. Expanding the carryback provision will allow business owners to balance out net losses over years when the business has a net operating gain. Spreading out this tax liability helps a business to decrease the impact of one or two bad years.
"NFIB plans to continue working with lawmakers as the stimulus package is considered by the U.S. Senate and will fight hard to have extending the net operating loss carryback provision included in the final economic stimulus package that is signed into law."
