Sen. Kirsten Gillibrand, D-New York, has co-sponsored legislation that would provide tax breaks and incentives for small business, including doubling the deduction for start-up costs.
The Success Act of 2012 contains several provisions that would benefit small businesses and investors, including:
- Doubling the tax deduction for new business start-up costs to $10,000. Eligible expenses would include advertising, training, market studies, consultant fees and other costs.
- Extending provisions that allow small businesses to write-off up to $500,000 in tangible property, such as machinery and other equipment.
- Extending provisions exempting from taxation 100 percent of the gains on small business stock.
- Allowing businesses to use general business “carryback” tax credits for up to five years to reduce tax liability. Basically, businesses could receive refunds for taxes paid in previous years.
Read the complete text of the Success Act of 2012 below.