Lipinski Helps Pass Small Business Jobs Act to Promote Job Creation by Providing Tax Relief and Increased Access to Credit for Small Businesses
Yesterday, Congressman Dan Lipinski (IL-03) helped pass the Small Business Jobs Act, H.R. 5297, to create jobs by providing $12 billion in tax relief and increased access to credit for small businesses. The vote in the House of Representatives was 237 to 187 and the President is expected to quickly sign the measure into law.
"Small businesses form the backbone of the Third District's economy, create nearly two-thirds of new jobs nationally, and are key to the recovery," Congressman Lipinski said. "But with the economy still stalled and loans hard to come by even for those with good track records, action is needed to remove barriers to growth. That's why I voted to lower the tax burden for small businesses and help them obtain the credit they need to expand their operations, invest in new equipment, and hire new workers."
Among numerous provisions reducing small businesses' tax burden, the bill allows businesses to write off half the cost of capital expenditures in 2010, and allows business owners to deduct the cost of their health insurance when calculating self-employment tax in 2010. It also substantially increases Small Business Administration loan limits and eliminates certain SBA loan fees.
H.R. 5297, which is fully paid for and will not add to the deficit, authorizes making up to $30 billion available to community banks and local lending institutions to spur them to deploy their own resources and boost lending to small businesses. The bill encourages increased lending and quick repayment by banks by lowering the interest rate they pay on the funds if they increase small-business lending, and increasing it if they fail to lend. It also includes strong oversight provisions to protect taxpayers.
In addition, the bill includes a measure cosponsored by Congressman Lipinski that authorizes the Treasury Department to direct up to $1.5 billion to state programs that increase lending to small employers. Funding under this program would be distributed to states based on a formula that takes into account each state's job losses, resulting in significant funding for Illinois' small businesses.
"I continue to focus on helping the private sector to create jobs, while fighting against unnecessary spending," said Congressman Lipinski, who voted against the $700 billion Wall Street bailout and the $1 trillion health care bill and did not support the $814 billion stimulus. "In today's economic climate, we need to make life easier for business owners, not harder, and that's exactly what this bill will do. However, I recognize more work remains to be done. Unfortunately, the Senate did not agree to include a provision in this bill to eliminate a measure in the health care reform law requiring businesses to file an IRS 1099 form for every vendor paid more than $600 annually. I voted to get rid of that burdensome requirement previously and will continue to work to eliminate it so that small businesses can focus on turning a profit instead of turning in unnecessary paperwork."
(September 24, 2010)
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