WASHINGTON — The Senate passed a package of small-business tax incentives and additional measures intended to improve access to capital last Thursday against Republican opposition.
The Small Business Jobs & Credit Act of 2010 will create a $30 billion fund to help small banks increase small-business lending. Proponents say the fund will help leverage up to $300 billion in lending, which has been stalled since the recession began in late 2007.
The bill passed 61-38 after George Voinovich (R-Ohio) and George LeMieux (R-Fla.) broke ranks with fellow Republicans. The House will vote on the bill next week before it goes to the White House to be signed into law.
The bill’s biggest tax incentive offers 100% depreciation on the purchase of qualified business equipment and machinery up to $500,000 in 2010 and 2011. The measure expands upon the 50% bonus depreciation allowed on 2008 and 2009 tax returns.
The bill also offers business startups incentives to spend and hire, lowers taxes on cell phones issued to employees, and offers write-offs for research and development. It also contains tax cuts designed specifically for retail businesses to open new branches and remodel existing ones.