February 04, 2005

Crapo: Small Business To Gain Under Jobs Bill

Provisions to benefit restaurants, tech companies, manufactures and others

Washington, DC â?? Idaho stands to gain millions under the American Job Creation Act conference reported approved by the U.S. Senate today, Idaho Senator Mike Crapo announced. H.R 4520 passed the Senate on a vote of 69 to 17; it was approved by the U.S. House late last week and will now be sent to the President for his signature. â??Small businesses will benefit significantly through a number of provisions in the jobs bill,â?? Crapo said. â??From technology and software investment to tax suspension and capital expenditure expansion, retailers, restaurants, manufacturers and others will find more opportunities to grow their businesses and expand their employee base. Several provisions promote diversification and investment, which will in turn benefit other Idaho companies. Companies like Dell and Hewlett-Packard who maintain a strong presence in Idaho strongly supported an incentive provision to reinvest earning into the United States. This jobs bills will make significant strides in continuing the national economic growth we have seen in recent months and will stimulate Idahoâ??s economic growth as well.â?? Provisions worth noting in Idaho include:Increased expensing for property and software owned by small businesses. (Mike) Three-year suspension of the outdated Special Occupancy Tax on alcohol, which was established more than 135 years ago to generate revenue for the Civil War. This tax is onerous on rural small businesses like restaurants and convenience stores. (Mike) Increases the number of small manufacturers eligible for Industrial Development Bond financing by increasing the capital expenditure limit from $10 million to $20 million. (Bob, Mike) Eliminates or reduces excise tax on manufacturers of fishing tackle boxes, fish finders, and bows and arrows. Restaurant improvements in 2005 can be depreciated over 15 years instead of the current 39 years. One-year incentive for U.S. corporations to reinvest the earnings of their controlled foreign corporations back into the U.S. # # #