MRAA Endorses Collins Tax Bill Written to Help Small Business
Wednesday, July 10, 2013
Posted by: Michael Geatz
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,
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
"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