Top 10 Tax Benefits for Small Businesses

The SBA has detailed the updates on tax benefits for owners of small businesses

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So many new provisions meant to encourage growth in small businesses have been included in legislation over the last two years, it’s hard to keep track. The SBA has put together a handy fact sheet to help business owners take advantage of those changes.

With the unemployment figure still stubbornly above 9%, small businesses are an important job engine in the U.S. The SBA noted that the “Recovery Act, the Small Business Jobs Act, the HIRE Act, the Affordable Care Act,” as well as The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, all contained provisions to help small businesses. Some have been addressed in one bill and then improved upon in another bill.

“Across the Administration, we’ve focused on a number of tools that are available to help small businesses continue to drive economic growth and create jobs,” SBA Administrator Karen Mills (left) told AdvisorOne in an e-mail from a spokesman. “In fact, over the last two years, 17 tax credits have been put in place for small businesses that support their efforts to buy equipment, grow their business, and even hire new workers. One of the first things I say to small business owners I meet is ‘Do you and your accountant know what tax credits are available to you?’ offers an overview of those tax credits and is a good place to start.”

To help wealth managers sort out the updates, here is an outline from the SBA’s fact sheet of the top 10 tax benefits for small businesses:

  1. Zero Capital Gains Taxes on Key Investments in Small Businesses
  2. Up to $500,000 Small Business Expensing Limit
  3. 100% Accelerated/Bonus Depreciation
  4. Tax Relief/Simplification for Cell Phone Deductions
  5. Increased Deduction for Entrepreneurs’ Start-Up Costs
  6. 5-Year Carryback of General Business Credits
  7. Limitations on Penalties for Errors in Tax Reporting
  8. General Business Credit Not Subject to Alternative Minimum Tax (AMT)
  9. New Health Care Tax Credits and Deductions
  10. A New Tax Credit for Hiring Unemployed Workers


See the SBA’s fact sheet for full details.

For more from on the impact of recent legislation on small businesses, see:

The Impact on Small Businesses of the Jobs Act: Part I

The Impact on Small Businesses of the Jobs Act: Part II

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