Senate Legislation: Small Business Tax Extenders

Senators Landrieu and Snowe, chair and ranking member of the Senate Small Business Committee, have introduced legislation (S. 2050, the Small Business Tax Extenders Act of 2012) that would extend certain expired small business tax provisions though 2012.  Some provisions in the bill include:

1. Section 179 expensing limitation of $500,000:  Extended through 2012.


2. Temporary exclusion of 100 percent of gain on small business stock:  Extended through 2012.


3. Five-year carryback of general business credits for small businesses:  Retroactively extended for 2011 and through 2012.


4. Alternative minimum tax rules concerning general business credits for small businesses: Retroactively extended for 2011 and through 2012.

CompTIA has supported extension of these provisions in the past, and we continue to do so.  We are pleased that Senators Landrieu and Snowe have zeroed in on the extenders most important to small businesses.

While many expect these small business extender provisions will be included in a broader tax extenders bill later this month, the outlook remains quite uncertain.  Extension of these tax provisions will require Congress to identify funding dollars, which will be difficult to do (if recent history holds true).  As an example, consider the ongoing negotiations over extension of the popular payroll tax cut:  Both Republicans and Democrats support the payroll tax cut extension through 2012, but are having a difficult time in determining how to pay for the costs.  Expect the same debate to be repeated with any tax extenders legislation.