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MRAA Endorses Collins Tax Bill Written to Help Small Business

Wednesday, July 10, 2013   (0 Comments)
Posted by: Michael Geatz
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Senator Susan Collins (R-Maine) recently introduced s.1085, the Small Business Tax Certainty and Growth Act. The bill would allow small businesses to plan for capital investments that are vital to business expansion and job creation by easing complex accounting rules for the smallest businesses and reduces the tax burden on new ventures.

The bill would provide small businesses with the ability to make long-range plans by making permanent the maximum allowable deduction under Section 179 of the Internal Revenue Code. This section allows a more rapid deduction of the cost of acquired assets. The amount of the maximum deduction has changed three times in the past six years and has been addresses by Congress as a "year-end” extended bill making it unpredictable from year to year. The amount of $250,000 would be permanent and would be indexed for inflation. It also extends a15-year depreciation for improvements with respect to restaurants, retail facilities, and leaseholds.

S. 1085 would also allow more companies to use the simpler cash method of accounting by doubling the threshold at which the accrual method is required from $5 million in gross receipts to $10 million.

Finally, the bill would permanently double the deduction for business start-up expenses from $5,000 to $10,000.

"MRAA supports this bill because marine retailers are among the small businesses that create jobs," said Matt Gruhn, MRAA President. "Taxes and tax reform are the most important concerns of our members. We believe this bill is a good step that will make a difference to allow marine retailers to thrive and create jobs."

- Larry Innis, Legislative Affairs