The SUCCESS Act of 2012, introduced by Senator Mary L. Landrieu, D-La, is believed to spur small business entrepreneurship and bring resultant job growth. This stand alone bill is supported by bipartisan in Senate as an amendment. It is considered to be an amendment of S. 2237 – Small Business Jobs and Tax Relief Act.
SUCCESS Act of 2012 exemplifies Contracting, Strategic Partnerships, Education, Capital and Smart Regulation as pillars based on which success comes to an organization. The SUCCESS Act got strong support with 57 bipartisan votes and five Republicans support. This Act also tries to explore tools, methods and strategies to help entrepreneurs find more support. Landrieu expressed hope to revisit this bill again in 2012, take all other senators into confidence, and get the small business assistance required to grow the economy.
This Act has made extensions of expiring tax cuts. The tax relief provisions of SUCCESS Act will deliver $12 billion dollars of tax cuts to small sized businesses in 2012-13. The Act’s tax relief includes:
- Cost accrued to start-up small businesses is deducted twice more than before.
- For qualifying investments in small business stocks, 100 percent capital gains tax relief is offered.
- Period of holding on to assets of corporations is reduced.
- Section 179 expensing is further enhanced for small businesses. Now it is possible to write-off up-to $250,000 for improvements in property.
- Cash flow to businesses is increased and five years of taxes are offset.
The SUCCESS Act also has the EXCEL Act for Small business owners. Expanding Access to Capital for Entrepreneurial Leaders Act shall raise the SBIC debt that SBA guarantees from $3 billion to $4 billion. The Act will also increase SBA guaranteed debt from $225 million to $350 million. There are also many other provisions made for small business owners under the EXCEL Act. There is the extension of 504 loan program and reintroduction of several ACTs to strengthen small business growth.
About Ramit Arora
Ramit Arora, Co-Founder and President of Biz2Credit, heads the company’s operations and handles larger bank and client relationships. He also oversees all strategic web initiatives for the company