Congressman Nick Lampson Votes To Pass Tax Relief For Small Businesses

[Press Release from Texas Congressman Nick Lampson (D-Stafford)]

Washington, DC - Congressman Nick Lampson (D-Stafford) today voted to pass bi-partisan legislation that would extend critical tax provisions to small business owners.  The Small Business Tax Relief Act of 2007 (H.R.976) is a revenue-neutral package that includes $1.3 billion in tax cuts through 2017 for small businesses.

“As a former small business owner, I know the challenges that small business owners face,” said Congressman Lampson. “The passage of this bill shows how bi-partisan cooperation can benefit working American men and women. I am proud to have helped pass this bill to assist small businesses in the 22nd Congressional District and across Southeast Texas.”

H.R. 976 includes provisions to increase the total amount for small business expenses and a one-year extension for Section 179 tax deductions. This will allow small businesses to more easily afford large capital expenses such as store updates, equipment upgrades, and technology purchases. The Act also extends the tax credit for employers of certain disadvantaged workers.

The Act also helps restaurant employers who depend on “tip credits” in their deductions. It allows businesses to continue claiming the full tip credit despite any increase in the federal minimum wage, freezing the minimum wage level in order to calculate the credit.

Supported by the U.S. Chamber of Commerce, American Farm Bureau Federation, and Work Opportunity Tax Credit Coalition, H.R. 976 passed the House floor with overwhelming bipartisan support.

America’s small businesses employ 50 percent of America’s private workforce. In the metropolitan Houston area, there are 86,119 small businesses which employ 1 in 4 area workers.

The Small Business Tax Relief Act will pave the way for the House and Senate to agree on legislation to raise the Federal minimum wage from $5.15 per hour to $7.25 per hour.

The Greater Houston Partnership released the following statement:

“The Houston Region is a region of entrepreneurs. There are approximately 76,000 businesses with 100 or fewer employees in the Houston region, which collectively employ one in four area workers (574,800) and provide $20.2 billion in annual payroll. In addition to contributing to overall economic stability, our small business community greatly enhances the Houston Region’s potential for economic growth. Today’s micro-enterprises are tomorrow’s multinationals and   some of them are quickly making that transition. Thirteen Houston area firms are on Fortune Magazine’s 2006 list of the 100 fastest-growing U.S. companies.

“As the Houston region’s leading business advocate, the Greater Houston Partnership recognizes the importance of our small business community to our future prosperity and applauds passage of the Small Business Tax Relief Act. By minimizing the tax burden placed on small enterprises, it will facilitate the growth of a sector vital to our region’s economy.”