The House passed a bill Wednesday that provides $19.3 billion in tax incentives to help small businesses obtain capital, while eliminating capital gains on some small-business stock.H.R. 4849, the Small Business and Infrastructure Tax Act, allows a 100% capital gains tax exemption from the sale of qualified small-business stock bought before 2012.The measure also increases the tax deduction for business start-ups from $5,000 to $20,000, and extends the Build America Bonds program through June 2013.The bill approved by the House offsets its $19.3 billion in new spending by cracking down on offshore tax havens and eliminating a tax break for paper-mill byproducts.As you might expect, there was a difference of opinion along party lines about the bill’s impact. Democrats said the bill would help small businesses create jobs, while Republicans said the bill lacked job-creating provisions and that tax increases would hurt companies that provide American jobs.The measures now head to the Senate, where their fate is uncertain. Senate Finance staffers said a small-business jobs bills is in the works, but no timeline for moving the bill was offered. The Senate has also suggested boosting loans for small-business relief.
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