05/09/2008
State
Alabama employers saved from $700 million unemployment tax increase
NFIB/Alabama members are grateful to Rep. Frank McDaniel (Albertville) and Sen. Roger Bedford (Russellville) for sponsoring and passing the State Unemployment Tax Act, better known as the SUTA bill. The passage of this bill saves Alabama employers about $700 million annually and preserves federal grants for the state employment service offices. NFIB members should take this opportunity to thank their legislators for passing this bill. Please call or write them a note on your business stationery and tell them how much you appreciate their support of small business.
House version of the repeal of the federal income tax deduction fails again but will return on the last day
The House version of the bill that would eliminate the state 4 percent sales tax on food failed again on the Budget Isolation Resolution procedural vote of 20 yeas to 11 nays. Three senators abstained and one did not vote. Because this is a constitutional amendment, it requires 21 "yes" votes to pass, one short. They do plan to vote again on this bill on the last day, May 19. This is an increase in taxes of approximately $345 million annually.
Please call the following senators at 334-242-7800 and thank them again for standing up for the taxpayers. Sens. Scott Beason (Birmingham), Ben Brooks (Mobile), Larry Dixon (Montgomery), Hank Erwin (Montevallo), Steve French (Birmingham), Rusty Glover (Mobile), Jimmy Holley (Elba), Del Marsh (Anniston), Tripp Pittman (Daphne), Harri Anne Smith (Slocomb) and Jabo Waggoner (Birmingham).
If your senator is not listed above, please call 334-242-7800 and urge them to vote no on House Bill 274. Please contact them no later than Friday, May 16.
Double deduction for health insurance coverage must be included in HB 350
The final day of the 2008 legislative session agenda will include the education budget and HB 350 by Rep. Richard Lindsey (Centre) that is linked to the NFIB-endorsed health insurance deduction legislation. During the weeklong break the Legislature is taking before the last day on Monday, May 19, please call your senator and ask them to support the business community's proposed changes to HB 350, including linking it to the full 200 percent health insurance tax credit for small businesses and their employees.
Throughout the 2008 legislative session, the Business Associations' Tax Coalition, of which NFIB is a founding member, has been trying to amend HB 350 to make it workable for business. Until this week, BATC has had no luck getting its message heard. BATC opposed the House versions of the bills, which the House adopted without the input of the business groups concerned.
NFIB member Sen. Del Marsh (Anniston) has included BATC in negotiations with the Alabama Education Association, which has been pushing HB 350 as a mechanism to balance the state's education budget. After days of negotiations, the education union appears ready to agree to most of the BATC plan but the AEA is insisting on a lesser tax credit for healthcare coverage. NFIB along with BATC members will continue to support the original version of HB 144, which allows the qualifying businesses and employees to deduct twice the amount they pay for health insurance.
Please call your senator at 334-242-7800 and urge them to support the NFIB/BATC revisions to HB 350.
Alabama business could lose much-needed tax breaks
HB 455 by Rep. Terry Spicer (Elba) is pending on the Senate calendar for passage on the last day. Rep. Spicer has amended this bill by decoupling the Alabama income tax code from the tax breaks under the stimulus package President Bush signed into law back in Feb. Alabama businesses would lose the bonus depreciation deduction small businesses can take on the depreciating value of equipment and machinery purchases. Proponents of the amendment by Rep. Spicer argued that de-coupling from the business incentive provisions saves $57 million for the education budget, but it's a tax increase of $57 million for Alabama businesses.
(Please read below a more detailed description of the bonus depreciation for businesses)
Please call your senator at 334-242-7800 and urge their support of removing the amendment sponsored by Rep. Spicer on the Senate floor.
Federal
Special 50 percent depreciation allowance
The Economic Stimulus Act of 2008 provided a significant tax incentive for businesses to make capital investments by adding a special 50 percent depreciation allowance for qualifying purchases.
This special bonus depreciation allowance is available to all businesses and applies to most types of tangible personal property and computer software acquired and placed in service in 2008.
It allows taxpayers to deduct 50 percent of the cost of qualifying property in addition to the regular depreciation allowance that is normally available. A detailed description of the business provisions contained in the Economic Stimulus Act of 2008 is available in IRS Publication 553, "Highlights of 2007 Tax Changes." Businesses may e-mail the IRS at Notice.Comments@irscounsel.treas.gov regarding issues related to the business provisions of the Economic Stimulus Act of 2008 that they would like addressed in the upcoming guidance. Please include IR-2008-58 in the subject line of the email.
New OSHA rule takes effect
Under a new Occupational Safety and Health Administration rule that takes effect May 15, businesses will be responsible for providing most required personal protective equipment at no cost to their employees. At NFIB's urging, OSHA has excluded several common items from this requirement. The new PPE rule contains exceptions for ordinary safety-toed footwear, ordinary prescription safety eyewear, logging boots and ordinary clothing and weather-related gear. For more information, visit www.osha.gov.
NFIB members invited to forum
NFIB members are invited to participate in a roundtable program regarding "Navigating Immigration Compliance and Enforcement E-Verify and Beyond" presented by Baker, Donelson, Bearman, Caldwell and Berkowitz, P.C. The complimentary meal and program will be held on May 20 from 11:30 – 1:00 at 1600 Wachovia Tower, 420 20th Street North, Birmingham. Seating is limited, so please reserve your seat by May 16 by contacting Courtney Hosemann at chosemann@bakerdonelson.com or 205-250-8361. This will be a practical discussion about the challenges of the current environment of worksite enforcement and verification and present some of the available solutions. Discussion will also include Form I-9 audits, no-match letters, the use of E-Verify and a state immigration update.
NFIB Summit deadline approaching
NFIB Summit attendees will hear from Sen. John McCain, the presumptive Republican Party nominee for president, at the NFIB 2008 National Small-Business Summit. The Summit will be June 8-11 at the Grand Hyatt Washington in Washington, D.C. Sen. McCain is scheduled to address the meeting on Tuesday morning. Sens. Hillary Clinton and Barack Obama also have been invited to speak to the hundreds of small business owners from around the country who are expected to attend.
More information about the Summit, including online registration, is available at www.NFIB.com/Summit.
If you have any questions, please contact the Montgomery office at 334-264-2261.
Sincerely,
Rosemary Elebash
NFIB/Alabama State Director
Rosemary.elebash@nfib.org
