Small Business Jobs Act of 2010 Takes Effect

Small Business Jobs Act of 2010 Tax Provisions

The SBJA contains tax provisions that will take effect this year – including several provisions designed to encourage investment and provide access to capital for businesses.

Here is a partial list of potential tax reduction and incentives described in the SBJA that are scheduled to take effect this year:

• Sect. 2011: Temporary exclusion of 100% of gain on certain small business stock
• Sect. 2012: General business credits of eligible small businesses for 2010 carried back 5 years
• Sect. 2013: General business credits of eligible small businesses in 2010 not subject to alternative minimum tax
• Sect. 2014: Temporary reduction in S-Corporation built-in gain recognition period
• Sect. 2021: Increased expensing limitations for 2010 and 2011; certain real property treated as Code section 179 property
• Sect. 2022: Additional first-year depreciation for 50% of the basis of certain qualified property
• Sect. 2031: Increase in amount allowed as deduction for start-up expenditures in 2010
• Sect. 2042: Deduction for health insurance costs in computing self-employment taxes in 2010