By Jay Heflin - 03/15/10 04:42 PM EDT
House Ways and Means Chairman Sandy Levin (D-Mich.) on Monday unveiled legislation that provides tax relief to small businesses to spur hiring. The legislation will be marked up Wednesday.
“Small businesses are an important engine of our economy and this bill combines a number of proposals to help them grow and free up resources to hire new workers,” Levin said in prepared remarks.
The bill’s centerpiece is a 100 percent exclusion of small business capital gains, and an extension of Build America Bonds beyond its current deadline. It also increases deductions for start-ups on certain purchases.
The bill is also offset, in part by repealing "80/20" rules that pertain to dividend and interest payments to foreign sources. It also increases reporting requirements on expenses related to rental property and streamlines the process for the IRS when collecting unpaid taxes from federal contractors.