Small Businesses Benefit From New Federal Tax Credits
Written by Ken Gaebler
As small business owners begin to prepare their taxes for 2010, they should take note of a number of tax credits and breaks that could benefit their bottom lines.
As tax season approaches, it would behoove owners to pay attention to small business financial news, especially as new tax credits and breaks are set to increase entrepreneurs' tax returns.
With the passage of September's Small Business Jobs Act and the healthcare reform law in March, companies are set to benefit from a number of tax credits, according to CNN Money.
One of the most widely publicized breaks comes as a part of healthcare reform. Under a provision in the law, small businesses that pay at least half of employees' health coverage will receive a credit of up to 35 percent. Businesses that are eligible for the full credit must employ 10 or fewer employees for an average annual wage of $25,000 or less.
Additionally, the Jobs Act provided for a "super-charged" Section 179 provision that the news source said, "allows businesses to write off the full amount of qualifying equipment or computer software made in 2010 or 2011, up to $500,000 per business, per year."
These tax credits could come as much needed relief for businesses that have been struggling financially and see little hope for a swift recovery. In fact, a recent report from the National Federation of Independent Businesses found that optimism in the sector fell by 0.6 points in December.
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