Dan Danner, executive vice president of the National Federation of Independent Business, the nation’s leading small business advocacy organization, issued the following statement in reaction to the economic stimulus package deal reached today:

“Over the past several weeks, NFIB has worked with Members of Congress and the White House to ensure that small businesses would be a primary focus as Congress moves forward with an economic stimulus plan. We are very pleased that the deal announced today includes many of the key tax provisions which NFIB listed as our top priorities for any economic stimulus package.”

Key provisions included in the economic stimulus deal:

• One of the most important provisions included in the stimulus package is increasing the dollar amount for small-business expensing limits. This will allow small-business owners to immediately write off business purchases and will help small-business owners expand their businesses. Allowing immediate expensing is an incentive for small-business owners to make investments in their business and can be more valuable than depreciating the investment over a long period of time.

• Another key provision included in the economic stimulus package is the 50 percent bonus depreciation deduction. This proposal provides an additional one-year depreciation deduction value to 50 percent of the value of the property. Bonus depreciation is an incentive for businesses to invest in their business now, providing an immediate deduction for half the cost of the investment.

“These provisions and others included in the stimulus package will help small businesses retain their current employees, hire new workers and/or purchase needed equipment for their businesses. And by helping small-businesses continue to grow and expand, the economy and all Americans will benefit.

“While the economic stimulus package deal reached by the U.S. House and White House contains important provisions for small business, one key item not included in this deal is expanding the net operating loss carryback provision from two years to five years. Expanding the carryback provision will allow business owners to balance out net losses over years when the business has a net operating gain. Spreading out this tax liability helps a business to decrease the impact of one or two bad years.

“NFIB plans to continue working with lawmakers as the stimulus package is considered by the U.S. Senate and will fight hard to have extending the net operating loss carryback provision included in the final economic stimulus package that is signed into law.”

NFIB is the nation’s leading small-business advocacy association, with offices in Washington, D.C. and all 50 state capitals. Founded in 1943 as a nonprofit, nonpartisan organization, NFIB gives small- and independent-business owners a voice in shaping the public policy issues that affect their business. NFIB’s powerful network of grassroots activists send their views directly to state and federal lawmakers through our unique member-only ballot, thus playing a critical role in supporting America’s free enterprise system.

NFIB’s mission is to promote and protect the right of our members to own, operate and grow their businesses. More information about NFIB is available online at: NFIB

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