According to a recent report, a bill regarding small businesses has been approved by the Senate. The bill would be instrumental in generating funds for the community banks in order to increase the loans to the small ventures. The fund would amount to $30 billion.
Moreover, the funds would also provide certain tax benefits to the large ventures also.
The bill would give an exemption to the enterprises that make huge investments especially in telecommunications and airlines.
The bill would extend the "bonus depreciation" tax break for the equipments which have been marketed in the year 2010.
The break had reportedly expired at the start of the year. Thus, it would be beneficial for the firms which can set aside half of the cost of the equipment this tax year.
However, the provision of the bill would cause a reduction of the revenues by $5.5 billion in the span of next ten years.
The bonus depreciation would not be as helpful for the smaller ventures. The reason behind it is that even in the present scenario they can cancel 100% of the equipment costs.
The bill also proposes to enhance this limit to $500,000.
An Economist at the American Enterprise Institute, Alan Viard, is of the view that the bigger and the medium ventures would be more concerned with the bonus depreciation.
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