Businesses and the enterprising individuals who run them will benefit from a number of tax credits and other incentives, federal and state loans and loan guarantees to help them grow and create new jobs, and financing to promote energy independence.
In addition to federal relief, businesses can also increase their revenues by competing for state government contracts.
The state’s Bureau of Minority and Women Business Opportunities, or BMWBO, works to support minority- and women-owned business participation in state contracting and state purchasing. To find information about identifying minority- and women-owned businesses to work with, select this link.
To help you find Recovery Act-funded projects that your business can bid on, see our Finding Business Opportunities Online Tutorial.
SMALL & DISADVANTAGED BUSINESSES
- IRS ARRA Information Center
- Extension of Enhanced Small Business Expensing
Small businesses may elect to write-off the cost of certain capital expenses in the year of acquisition in lieu of recovering these costs over time through depreciation until the end of 2010.
- 5-Year Carryback of Net Operating Losses for Small Businesses
The net operating losses (“NOLs”) carryback period is extended to five years for small businesses with gross receipts of $15 million or less.
- Small Business Capital Gains
Allows a seventy-five percent (75%) exclusion for individuals on the gain from the sale of certain small business stock held for more than five years.
- Temporary Small Business Estimated Tax Payment Relief
Certain small businesses will see a reduction in their 2009 required estimated tax payments.
- Federal Business Tax Relief & Incentives
The federal economic recovery legislation extends numerous tax credits and incentives to businesses in the commonwealth.
- Extension of Bonus Depreciation
Allows businesses to immediately write-off of 50%of the cost of capital expenditures on depreciable property (e.g., equipment, tractors, wind turbines, solar panels, and computers) acquired in 2009.
- Election to Accelerate Recognition of Historic AMT/R&D Credits
Businesses can opt to accelerate the recognition of a portion of their historic AMT or research and development (R&D) credits in lieu of bonus depreciation in 2009.
- Delayed Recognition of Certain Cancellation of Debt Income (CODI)
Certain businesses will be allowed to recognize CODI over 10 years for specified types of business debt repurchased by the business after December 31, 2008 and before January 1, 2011.
- Incentives to Hire Unemployed Veterans and Disconnected Youth
Businesses are now allowed to claim a work opportunity tax credit equal to 40 percent of the first $6,000 of wages paid to unemployed veterans and disconnected youth.
- Temporary Reduction of S Corporation Built-In Gains Holding Period
Taxable corporations that convert to S corporations in 2009 or 2010 will only need to hold their assets for seven years in order to avoid a tax on any built-in gains following the conversion.