New business tax relief

There are several new business tax relief measures that have been introduced or expanded in recent years. Here are some examples:

  1. Tax Cuts and Jobs Act (2017): The Tax Cuts and Jobs Act (TCJA) significantly reduced corporate tax rates from 35% to 21%. It also introduced a new pass-through deduction for small businesses, allowing them to deduct up to 20% of their qualified business income.
  2. Section 179 Expensing: The TCJA increased the Section 179 expensing limit from $500,000 to $1 million, allowing businesses to immediately deduct the cost of qualified property, such as equipment and software.
  3. Bonus Depreciation: The TCJA also introduced a 100% bonus depreciation for qualified property, allowing businesses to immediately write off the full cost of new equipment and property.
  4. Research and Development (R&D) Tax Credit: The R&D tax credit is a non-refundable credit that rewards businesses for investing in research and development activities. The credit has been expanded to include more industries and activities.
  5. Work Opportunity Tax Credit (WOTC): The WOTC is a refundable tax credit that rewards businesses for hiring employees from certain target groups, such as veterans, youth, and individuals with disabilities.
  6. Empowerment Zone Tax Incentives: The Empowerment Zone Tax Incentives program provides tax breaks to businesses that locate in designated empowerment zones, which are areas with high poverty rates and unemployment.
  7. Opportunity Zones: The Opportunity Zones program allows businesses to defer capital gains taxes on investments in designated opportunity zones, which are areas with high poverty rates and unemployment.
  8. Small Business Health Care Tax Credit: The Small Business Health Care Tax Credit is a refundable tax credit that rewards small businesses for providing health insurance to their employees.
  9. Fringe Benefit Tax Exclusion: The Fringe Benefit Tax Exclusion allows businesses to exclude certain fringe benefits, such as employee meals and entertainment, from their taxable income.
  10. Tax-Free Treatment of Small Business Stock: The Tax-Free Treatment of Small Business Stock allows businesses to exclude certain gains on the sale of small business stock from their taxable income.

It's important to note that these tax relief measures are subject to change and may have specific eligibility requirements and limitations. Businesses should consult with a tax professional or financial advisor to determine which tax relief measures may be available to them.