Stimulus Plan to Offer Business Incentives
BY Angus Loten
Lawmakers agree to a $140 billion package to boost the economy with temporary tax cuts for small firms.
House and administration negotiators this week reached a tentative agreement on a $140 billion economy stimulus package that includes temporary tax incentives for small businesses.
The plan, announced Thursday following late-night negotiations, would offer most U.S. employees an immediate tax rebate of $300 to $1,200, along with one-time tax incentives for small businesses investing in new equipment.
Small-business advocates have urged Congress to include more permanent tax cuts in the stimulus plan, among other measures.
Dan Danner, executive vice president of the National Federation of Independent Business, said the package contained "important provisions" for small business.
"One key item not included in this deal is expanding the net operating loss carryback provision from two years to five years," Danner said. The carryback provision allows small-business owners to spread tax liabilities over years with net operating gains, reducing the impact of one or two bad years.
The House is expected to vote on the stimulus package this week.