The National Federation of Independent Business (NFIB), representing 11,000 small business owners in New York, today urged its congressional delegation to support a tax-relief bill that garnered strong bipartisan support in the past and which would be a shot in the arm for small businesses in a rough economy.
“This is an extremely high priority for New York small businesses and farmers and we think that our congressional representatives should make it their priority to pass,” said NFIB State Director Mike Durant.
The bill, HR 4457, also known as the Small Business Tax Relief Act, would allow small business owners to deduct the full cost of up to $500,000 in new machinery, vehicles and other capital assets in the same year they make the investments. That’s a major change from the current system, under which businesses can deduct only $25,000 in new equipment. For investments above that level, small businesses can only deduct a portion of the depreciated value each year.
“Those reforms would allow small business owners to recoup more of their investments and to do so much sooner than the current system allows,” said Durant. “It would create an immediate incentive for small businesses to invest in themselves, grow and create jobs.”
It would also simplify the tax filing requirements for small business owners who would no longer have to repeat the same exercise every year possibly for a decade or more.
“Most New York small businesses don’t have in-house tax experts and consultants to help them navigate the system and the paperwork,” said Durant. “So there’s an immediate tax benefit that also reduces for small business owners the cost and time required for tax preparation, filing and compliance.”
NFIB has listed the bill among its key votes for this session. It will be part of the scorecard, in other words, and according to Durant the state’s congressional delegation should give it bipartisan support.
“There’s a real chance for permanent, bipartisan tax relief in this Congress, and it’s this bill,” said Durant. “Our members are very strongly urging their congressional representatives to vote for this measure on Thursday.”