House Small Business Committee Chairman Sam Graves (R-MO) issued the following statement in support of the Tax Increase Prevention Act (HR 5771):
 
“High taxes and a complex tax code have a devastating effect on small businesses,” said Chairman Graves. “I support extending these business-friendly tax provisions that will help our economy improve. The research credit, bonus depreciation, property expensing, small business stock exclusion, and reduction in S-corporation recognition period for built-in gain are worthy extensions that will help small businesses grow and create jobs.

“The SBA reports that the average tax compliance cost per employee for small businesses is almost three times the per employee cost for the average large firm, and small businesses spend more than 5.5 billion hours fulfilling their income tax obligations. The power of our entrepreneurial private sector won’t be unleashed until we provide tax relief for our small business community.”

Beneficial tax extenders for small businesses in the Tax Increase Prevention Act include:
    • Section 111. Extension of research credit
    • Section 122. Extension of 15-year cost recovery for qualified leasehold improvements, qualified restaurant buildings and improvements, and qualified retail improvements
    • Section 125. Extension of bonus depreciation
    • Section 127. Extension of increased expensing limitations and treatment of certain real property as section 179 property
    • Section 136. Extension of temporary exclusion of 100 percent of gain on certain small business stock
    • Section 138. Extension of reduction in S-corporation recognition period for built-in gains tax

The Committee has made small business tax issues a high priority during the past two Congresses. In April, Graves held a hearing on the challenges small businesses face with complying with the tax code. A National Small Business Association (NSBA) tax survey was released in conjunction with the hearing, showing that a majority of small businesses spend 40 hours preparing to file their taxes, while 40 percent spend a costly two full workweeks on the process. In April of 2013, the Committee held a hearing with Ways and Means Committee Chairman Dave Camp supporting tax reform.

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