Small Business Assistance has Important Place in Stimulus Package (Rep. Paul Hodes)

I found it very encouraging this week to see both parties working together on a stimulus package, in order to provide targeted assistance for the people and businesses who need a helping hand.  Acting quickly is vital, and it is important to delivery this shot in the arm to our economy.

I’m also very proud to have helped to introduce a bill that was included in the stimulus agreement to provide tax relief and investment incentives for small business.  The bill I helped to introduce allows small business owners to write off expenses necessary to their business, like capital equipment, under Section 179.  Current law allows for an instant write-off up to $125,000, while my bill would double that to $250,000.  This provides both an important source of tax relief for small businesses and an incentive for small businesses to increase investment in equipment, which in turn helps other supplying businesses and spurs economic activity.

This targeted assistance to small business has an important place in the stimulus package.  One of the people in my home wrote to let me know the impact it would have on his business. Derry business owner Bill Langille told me: “If Batchelder Biodiesel Refineries had the opportunity to recover expanded tax relief through Section 179 tax relief, we would be able to accelerate the deployment of our refineries.  We would expect to purchase the capital equipment for at least 2 refineries in the first year over and above our current plan, and those refineries would support an additional 6 jobs.