Watertown— The American Tax Relief Act of 2012 has extended until December 31, 2013. The relief act enables certain businesses, tax incentives and individual residents the opportunity to partake in these incentives by taking an economically depressed census that is otherwise known as “empowerment zones.”
New York’s 21st District, Congressman Bill Owens highlighted this past Tuesday, how the tax relief act will benefit small businesses:
“There is work ahead to reduce federal spending and get our fiscal house in order, but even as this process plays out we must ensure small businesses have every opportunity to thrive and create jobs,” said Owens. “I remain confident we can achieve this in the year ahead if we work in a bipartisan spirit and keep the needs of small business owners in mind as we proceed. Extending certain small business tax relief as part of the fiscal cliff deal was a good first step.”
H.R. 8, the American Taxpayer Relief Act, extended various tax credits and other policies intended to support small businesses activities, including family farms. These include:
· Extension of the popular “New Market Tax Credit” for an additional two years. The program was established in 2000 to spur increased investment into operating businesses and real estate projects, typically in small communities like those in Upstate New York.
· A 100 percent exemption on Qualified Small Business Stock through 2013. This provision applies retroactively to investments made in 2012, creating additional incentive for outside investment in startup businesses in need of capital.
· Extension of 50 percent “bonus” depreciation for businesses on qualified capital assets placed in service before January 1, 2014.
· For S-Corporations, an extension of the five-year built-in gains holding period for tax years beginning in 2012 and 2013. The bill also extends certain basis adjustments regarding stocks of S-Corporations to incentivize charitable contributions.
Congressman Owens also reaffirmed his commitment to reducing unnecessary federal mandates that hamper small businesses, calling on local business leaders to stay in touch with their elected officials.
“As Congress looks to cut its own costs in the months ahead, businesses should stay in touch to let us know when government overreach is hampering growth,” said Owens. “Every dollar businesses spend on mandates and paperwork is a dollar that doesn’t go to help create jobs. If I can help reduce these burdens or work with agencies to find solutions, I’m eager to do so.”
Congressman Owens keeps and open form on his Congressional website where businesses and individuals can suggest federal regulations that are overly burdensome or costly so the Congressman address the issue. In the 112th Congress, Owens introduced legislation passed in the House and Senate that would eliminate a mandate levied against auto dealerships across the country.