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NAMA Backs Tax Relief for Small Businesses

CHICAGO — The National Automatic Merchandising Assn. (NAMA) has endorsed H.R. 4841, the Small Business Tax Relief and Job Growth Act of 2010. Rep. Nydia Velazquez (D-NY) introduced the legislation on March 21. Velazquez serves as chairperson of the House Small Business Committee.“Job creation and small-business development are currently at the forefront of the legislative agenda,” says Ned Monroe, NAMA senior vice president of government affairs. “In this economic climate, small businesses face decreased access to credit, diminishing demand for their products and millions of unemployed Americans are finding it harder to start their own businesses. This bill addresses these concerns by giving small businesses tax relief and allowing them to create jobs.”Highlights of the proposed legislation include:

  • Section 2 increases deductibility for start-up expenditures. Under current law, taxpayers may only deduct up to $5,000 of the start-up costs incurred when attempting to form a new business venture. This bill increases the amount of the first-year deduction from $5,000 to $20,000.
  • Section 3 expands the scope of Section 179 expensing. Under current law, the only types of property that are eligible for Section 179 expensing are purchases of tangible property (cars, computers, manufacturing equipment). This bill would expand the scope of Section 179 expensing to allow deductibility of structural improvements and improvements to real property.
  • Section 4 reduces corporate capital gains for small corporations. The current capital gains tax rate for corporations is currently 35%. This bill would decrease the corporate capital gain rate for small corporations from 35% to 15%.

NAMA is the national trade association of the food and refreshment vending, coffee service and food service management industries. 

Have a question or comment? E-mail our editor Bruce Beggs at [email protected].