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2009 tax law changes mean credit for small businesses

For one, small businesses that went green in 2009 or have started eco-friendly initiatives to kick off the decade can receive a credit of $4,000 for certain energy efficient purchases.

Another new law that could lead to increased tax credits for SMBs applies to any property or equipment purchases; these expenditures can be written off on 2009 tax returns. The American Recovery and Reinvestment Act extended bonus deprecation and increased deductions so that small business owners can recover these investments at once instead of over several years.

The American Recovery and Reinvestment Act also allows small business owners to delay paying taxes on cancelled debt that would be calculated in their overall income. Entrepreneurs can elect to delay the recognition of the cancelled debt as income for up to five years.

In addition to these tax credits from the IRS, small businesses can look forward to increased credit lines in the new year. President Obama recently announced that the government will award $30 billion to small banks to increase loan opportunities for SMBs.

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This entry was posted on Sunday, January 31st, 2010 and is filed under Business News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
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