The President believes that entrepreneurs and small businesses are engines of innovation and economic growth and are at the forefront of the nation's economic recovery. This is why the Obama Administration has worked to enact 18 small business tax cuts and numerous measures to help more small businesses access the credit they need to invest, hire, and grow.
This week, the Obama Administration is announcing additional initiatives that build on this record of progress and will help our nation’s small businesses expand and create jobs. Five of these initiatives are immediate executive actions that will accelerate Federal payments, reduce paperwork, and make it easier for small firms to access loans and tax credits, and one is a legislative proposal to raise the amount of investment small businesses can expense next year.
Accelerate payments to small business subcontractors: Through the Office of Management and Budget, the President will direct agencies to make contract payments along an accelerated timeline to all prime contractors for the next year (typically 15 days after receipt of proper documentation, as opposed to 30 days), with the understanding that those prime contractors will similarly accelerate payments to their small business subcontractors.
Announce support for Section 179 expensing at $250,000 for one year (requires legislation): President Obama is calling on Congress to let small businesses write off up to $250,000 in capital investments in 2013, such as machinery and equipment, to drive productivity. This builds on the President’s proposal for 100% expensing for all firms in 2012. Because an increase in Section 179 expensing was part of the 2001 / 2003 tax cuts, this proposal is included in the President’s call for extending those tax cuts for the middle class next year. Without that extension, the expensing limit for small businesses is ...