By the time President Obama signed the
stimulus bill into law, we all knew the score: there was very little
in the bill directed at small business. That, however, is not to say
that there is nothing in the thousand-plus page bill that will help
the small business sector. You just have to look for it.
You will find some tax breaks, some
grants and some health reform money. Some of the money is aimed
directly at small businesses, but a lot of it is work that small
businesses will have to compete for, with other small businesses and
with larger firms.
Tax Breaks.
Small
businesses with less than $15 million in gross receipts may now claim
additional tax refunds. These businesses may use operating losses
from 2008 and 2009 to shield taxable income from the previous five
years. This is up from just two years. Tax breaks also play a big
part in the government's green initiative. For example, all Americans
may now qualify for a tax credit equal to 30% of solar-based
renovations, which is a bid by the government to boost demand for
solar-powered homes.
There are other tax-related provisions
that could benefit small businesses. These include doubling the
amount that small businesses can deduct on 2009 capital expenditures
to $250,000 from $130,000; allowing businesses to immediately
write-off 50% of the cost of new equipment purchased in 2009; and
permitting some companies to defer taxes on certain types of business
debt repurchased before 2011.
Grants.
Federal agencies
will have increased funding for small business start-ups through
affiliated research efforts like the Small Business Innovation
Research (SBIR) grants and Small Business Technology Transfer (STTR)
program. Remember, while the research must serve the funding agency's
mission, it can certainly have commercial potential. The government's
greening efforts include grants of up to 30% of the cost of major
commercial renewable energy projects such as solar-panel-covered
rooftops and windmills. Federal buildings will get a green makeover.
In addition, small broadband providers
will be able to secure a portion of the $7.2 billion earmarked for
the expansion of broadband access and small battery manufacturers
will be eligible for part of the $2 billion set aside for battery
research and development in the hopes of pushing one or more of these
companies to a technological breakthrough. Most of the broadband
money, which is aimed at improving broadband service in rural areas,
will come through grants from the National Telecommunication and
Information Administration.
Healthcare Reform.
Of the
$787 billion in the stimulus package, $140 billion of it is going
into healthcare initiatives, including $19 billion to install systems
required to store and transfer medical records online, which is
expected to give a boost to small technology firms.
Infrastructure.
With $150
billion going for improvements in roads and bridges, the money being
doled out to state and local agencies, this is a good time for small
businesses in the road and construction trades.
The key here is this: The tax breaks
are great and will help small businesses across the country, but if
your business is in one of the industries directly supported by the
stimulus bill, especially if you run a tech or construction firm,
then with some research, effort and luck, you could find yourself
lucratively stimulated.
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