Shaheen, Colleagues Introduce Bill to Support New Businesses with Major Expansion of Startup Tax Deduction

(Washington, DC) – During the start of National Small Business Month, U.S. Senator Jeanne Shaheen (D-NH),a top member and former Chair of the U.S. Senate Committee on Small Business and Entrepreneurship, joined by U.S. Senators Jacky Rosen (D-NV) and Tammy Baldwin (D-WI), introduced theTax Relief for New Businesses Act– legislation that would provide tax relief to entrepreneurs looking to start a small business and reduce barriers for startups. The bill would increase the startup tax deduction from $5,000 to $50,000 and allow businesses to write off more expenses to compensate for the increasing cost of starting a business. Currently, small business owners can only deduct up to $5,000 in startup costs in the first year, yet arecent surveyfound that they spend an average of $40,000 to get their businesses off the ground.
“Small businesses are the lifeblood of the Granite State’s economy, but it’s getting more costly and difficult for local entrepreneurs to open up shop,”said Senator Shaheen.“Our commonsenseTax Relief for New Businesses Actwould give entrepreneurs a helping hand up so they can succeed and fuel job growth.”
TheTax Relief for New Businesses Act is also co-sponsored by U.S. Senators Chris Coons (D-DE), Elissa Slotkin (D-MI), Ron Wyden (D-OR), Richard Blumenthal (D-CT), Ruben Gallego (D-AZ), Amy Klobuchar (D-MN), Martin Heinrich (D-NM) and Angela Alsobrooks (D-MD).
“Repeated research has demonstrated that new businesses – ‘startups’ – are a critical driver of economic growth, job creation, and opportunity expansion,”said John Dearie, President of Center for American Entrepreneurship.“But launching a new business costs money. And because startup costs are incurred long before the first dollar of revenue, those costs can be a major obstacle to new business formation. That’s why theTax Relief for New Businesses Actis so important. The legislation is powerfully pro-entrepreneurship, pro-growth, and pro-job creation. CAE thanks Senators Jacky Rosen (D-NV), Tammy Baldwin (D-WI), and Jeanne Shaheen (D-NH) for their leadership and looks forward to working with them to ensure swift passage of the legislation.”
“Starting a business is a vote of confidence in the future,”said Richard Trent, Executive Director of Main Street Alliance.“Men and women all across the country start businesses that help our communities thrive. Small businesses are connected to their communities, sponsoring little league teams, providing employment and creating a robust culture and economy. But one of the most difficult parts of starting a business is having the capital to do so. A lack of generational wealth, unfair lending practices and discrimination make this difficult for too many. TheTax Relief for New Businesses Actis a huge step in the right direction to level the playing field and jump start Main Streets all across America.”
As a former small business owner and nowa top member of the Small Business and Entrepreneurship Committee, Shaheen fights for New Hampshire’s—and America’s—small businesses. During her time as Chair of the committee,Shaheen focused on addressing some of the biggest challengessmall business owners face, reporting key legislation out of committee that included critical improvements to the State Trade Expansion Program (STEP) and improved access to federal contracting opportunities for small businesses.
In February, Shaheen introduced the bipartisanSmall Business Technological Advancement Actwhich would help small business owners integrate digital tools into their businesses by clarifying that small businesses can utilize the Small Business Administration’s (SBA) 7(a) loan program to finance technology that supports daily operations, including inventory management, product delivery and accounting systems. Earlier this year, she introduced the bipartisanHelping Small Businesses THRIVE Actwith Senator Bill Cassidy (R-LA) that would direct SBA to create a new program that helps small businesses lock in the cost of commodities, like gasoline or lumber, in order to protect against the future volatile price of energy and other expenses.
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