In IR-2010-69, the Internal Revenue Service (the “IRS”) encourages small businesses to take advantage of tax-saving opportunities included in recently enacted federal legislation. The Release says that a variety of business tax deductions and credits were created, extended and expanded by the American Recovery and Reinvestment Act of 2009, this year’s Hiring Incentives to Restore Employment and the Affordable Care Act (the recent health care legislation). Because some of these changes are available only for this year, eligible businesses have only a few months to take action and save on their taxes.
The tax incentives include the following:
–the new tax credit for health care contributions;
–the new payroll tax exemption and tax credit for new hires;
–the work opportunity tax credit for hiring employees that belong to certain targeted groups (including individuals aged 18 to 39 and living in designated communities in 43 states and the District of Columbia, recipients of various types of public assistance, certain veterans, ex-felons and certain youth workers);
–the exclusion of gain on the sale of certain small business stock; and
–the 65% COBRA premium subsidy