(Mishawaka, IN) Saturday morning, Congressman Joe Donnelly visited the Weaver grain farm in Mishawaka to highlight the recent passage of H.R. 976, The Small Business Tax Relief Act.  The bipartisan legislation will provide $1.3 billion in tax relief to help small businesses and family farmers invest in new equipment and create new jobs.

“Small businesses and family farms are the backbone of our communities and the engine of our economy,” Donnelly said.  “It’s critical that we provide our entrepreneurs the necessary support they need to invest in the equipment, technology, and manpower to stay competitive in today’s global economy.”

As an original co-sponsor of the legislation, Donnelly noted that  H.R. 976 would increase both the amount small businesses can deduct from their taxes from $112,000 to $125,000, and the number of business that can take these deductions.  These credits will help small businesses invest in new equipment and more easily afford large capital expenses.

“Capital costs, such as new equipment, can pose real obstacles to family farmers trying to maintain a successful business,” Donnelly said. “This legislation would make it easier for Hoosier farmers to invest in new machinery equipment, barn cleaners, and even livestock.”

In addition, the legislation would extend and expand the Work Opportunity Tax Credit (WOTC) to provide incentives for employers to hire workers who frequently experience barriers to employment, such as disabled veterans.  Furthermore, the bill provides relief to restaurant owners by maintaining the current tip credit that small businesses take for the Social Security taxes they pay on their employee’s tips, despite the increase of the minimum wage.

Donnelly went on to note, “what’s more, this bipartisan tax relief package satisfies the House Pay-Go rules, meaning that we were able to provide much needed, common sense relief to our small businesses without contributing to our nation’s mounting national debt.”

H.R. 976 passed the House of Representatives on February 16, 2007 by a vote of 360-45.  Because the House and Senate passed different versions of this legislation, a compromise bill must be negotiated by a conference committee and accepted by both bodies before being sent to the president for his signature.