ASTA today praised U.S. Rep. Hank Johnson (D-GA) for introducing H.R. 4032, the Help Entrepreneurs Create American Jobs Act of 2012, which would amend the Internal Revenue Service Code of 1986 and increase the tax cut for start-up businesses in their first year of operation. The bill, which was cosponsored by Reps. John Lewis (D-GA), Jim McDermott (D-WA), Gerry Connolly (D-VA), Eleanor Holmes Norton (D-DC), Ed Towns (D-NY), Gary Peters (D-MI), Barbara Lee (D-CA), Tim Ryan (D-OH) and John Conyers (D-MI), would permanently double the deduction a new business can take for start-up expenses from $5,000 to $10,000.
Said ASTA CEO Tony Gonchar: “With 98 percent of U.S. travel agencies qualifying as small businesses, ASTA supports measures that boost the economy and encourage the growth of small businesses. This bill will allow small businesses to stay competitive, while bringing an influx of cash and job opportunities to local economies. ASTA wishes to thank Congressman Johnson for his strong leadership in supporting small business and recognizing the important role they play in our economy.”
If passed, H.R. 4032 would also permanently increase the threshold for the deduction’s phase-out from $50,000 to $60,000. For some companies, it would eliminate the tax complications of amortizing start-up expenses, as well.