(From Stanly News & Press)

Congressman Larry Kissell has signed on to sponsor a bill that would expand the start-up deduction for small businesses. The bill, H.R. 1552, the Small Business Formation and Job Creation Act, would raise the new business start-up deduction from $5,000 to $20,000, opening the door to more potential small business entrepreneurs by freeing up more capital.

“As we continue to focus on economic recovery, small businesses are instrumental in that recovery and creating new small business will be vital,” Kissell said.

“Small businesses create new jobs and drive innovation. This bill works as an incentive for folks to act now when opening a new business, and not to wait until the recession passes.”

The bipartisan bill is strongly supported by the National Federation of Independent Business and includes a phase-out limit of $75,000. It would apply to tax years 2009-2011.

History shows more people start small businesses during times of recession and high unemployment. A critical asset to the American economy, small businesses have been shown to create four out of every five new jobs.

This legislation is designed to encourage small business formation, job creation and innovation to help jump starting the economy.