GALVESTON — Rep. Joe Donnelly told a group of local farmers that the $1.3 billion included in the Small Business Tax Relief legislation will help small businesses and family farmers remain profitable in the future.
Donnelly, D-2nd District, explained the legislation has already been approved by the U.S. House and is headed to a conference committee because of differences with the version approved by the U.S. Senate.
The bill will increase the deduction small businesses can take from their taxes from $112,000 to $125,000 and increase the number of businesses that will be eligible.
“Capital costs, such as new equipment, can pose real obstacles to family farmers trying to maintain a successful business,” Donnelly said. “This legislation would make it easier for Hoosier farmers to invest in new machinery equipment, barn cleaners and even livestock.”
When asked, Donnelly said the provisions of the legislation covers all small businesses and not just family farms.
“This is aimed at small businesses and family farms we have in our district,” he said. “The tax breaks help with the cost of operating. It covers a broad spectrum, the small business owner will be helped the same as the farmer.”
Donnelly said the tax relief for small businesses and family farms is designed to offset any increases in the federal minimum wage.
“This is to make sure that the minimum wage hike will not have an impact on small businesses,” he said. “It gives them an extra boost to remain profitable.”
The bill also provides work tax credits for small businesses and family farmers who hire disabled veterans.
“We were able to combine tax relief and to help disabled veterans find employment in the same bill,” Donnelly said. “When you talk about veterans it is a commitment that is the top priority.”
One of the key aspects of the legislation is that the $1.3 billion in tax relief doesn’t increase the federal deficit.
“We removed some projects from the federal budget like the bridges to nowhere,” Donnelly said.
He hopes that the amount of the tax relief will be increased from $1.3 billion in the final version of the bill, but assured the local farmers it would not be lowered.
The tax relief built into the legislation will remain in effect for 10 years.
“Small businesses and family farms are the backbone of our communities and the engine of our economy,” Donnelly said. “It’s critical that we provide our entrepreneurs the necessary support they need to invest in the equipment, technology and manpower to stay competitive in today’s global economy.”
Ken de la Bastide can be reached at (765) 454 -8580 or via e-mail at ken.delabastide@kokomotribune.com
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