Washington, D.C. – President Barack Obama signed the Small Business Jobs Act of 2010 into law on Monday, providing a $30 billion lending fund and $12 billion in tax breaks for small businesses. The bill contains a host of proposals aimed at giving the nation’s small businesses support and incentives to make new investments and expand.

The bill provides eight small business tax cuts. This includes the elimination of all capitol gains taxes on small business investments held for more than five years. It gives businesses the ability to write-off the first $500,000 of investments in new equipment purchases. It also allows those who are self-employed to deduct 100 percent of the cost of health insurance from their self-employment taxes.

The bill includes a change in rules so that cell phones can be deducted without burdensome extra documentation.

It will allow certain businesses to “carry back” their general business credits to offset five years of taxes, as well as give them a break on their taxes for this year.

A new $30 billion Small Business Lending Fund will also be established to provide capital to small banks with incentives to increase small business lending. A new State Small Business Credit Initiative will support at least $15 billion in new lending by strengthening state small business programs that leverage private-sector lenders to extend additional credit.

According to Larry Cope, Director of Economic Development for the Tuolumne County Economic Development Authority, “the bill will give our nation’s small businesses support and incentives to help them grow and hire…and small businesses will start benefiting from the bill on day one.”

Story by Alex Lane This email address is being protected from spambots. You need JavaScript enabled to view it.