Fact Sheet: How the Inflation Relief Act Helps Small Businesses

Date:

Share post:

[ad_1]

By signing the De-Inflation Act, President Biden is making good on his promise to build an economy that works for working families and small businesses. The Inflation Reduction Act makes urgent investments to reduce prescription drug costs, health care costs, and energy costs to create opportunities for America’s 33 million small businesses and startups. It’s the most powerful step we’ve taken to tackle the climate crisis. By reducing the deficit, the Fed helps fight inflation. The super-wealthy and large corporations will be asked to pay their fair share, and no small business or household making less than $400,000 a year will pay a penny more in taxes.

President Biden and Congressional Democrats overcame special interests to pass this historic legislation to provide for American families and small businesses and grow the economy from the bottom up and the middle class.

Reducing costs for small businesses

The Inflation Reduction Act would reduce costs for small businesses by keeping health care costs low, supporting energy efficiency investments, and strengthening supply chain resilience.

Securing critical support for small business health care costs. The Inflation Reduction Act preserves America’s Savings Plan premium tax credit subsidies for Affordable Care Act (ACA) plans by extending them through 2025. According to a recent analysis of 2021 tax data provided by the Department of Health and Human Services, the ACA Marketplace serves as an important source of coverage for 2.6 million small business owners and self-employed individuals. Additionally, small business owners and the self-employed make up 25 percent of the market among working-age adults. Since the implementation of the ACA, the insurance rate for the self-employed has fallen dramatically from 30% in 2013 to 20.5% in 2019, resulting in 1.3 million uninsured self-employed adults. in general, 13 million Americans will save an average of $800 each year in health insurance premiums compared to what they would have paid without the inflation-reduction law. This investment will continue to encourage new business startups and entrepreneurship, because entrepreneurs can reach a higher level to enter into business without the risk of losing insurance.

Cutting energy costs for small businesses. The Inflation Reduction Act includes several provisions that will save small business owners money on energy costs:

  • Small businesses can get a tax credit of up to 30% to switch to low-cost solar energy – reducing operating costs and protecting against the fluctuating energy prices that are currently squeezing small businesses.
  • Small business building owners can receive a tax credit of up to $5 per square foot to finance energy efficiency improvements that provide lower utility bills.
  • Small businesses that use large vehicles such as trucks and vans will benefit from a tax credit covering 30% of the purchase costs of electric and fuel cell models.

Small businesses can help tackle the climate crisis by saving on energy costs. The greater frequency and scale of natural disasters has put many small businesses and communities at risk of destruction and disruption. The Inflation Reduction Act’s historic action on climate change will provide economic stability and growth to Main Streets across the country.

Reducing the deficit to fight inflation. The Deinflation Act has more than fully paid for itself and will reduce the deficit for decades to come. This builds on the massive debt reduction that took place in the Biden-Harris administration. After cutting the deficit by more than $350 billion last year, the administration is forecast to run a deficit of more than $1.5 trillion this year. This is the largest one-year deficit in our nation’s history and the lowest level the Congressional Budget Office has set before approving the US bailout plan. And many leading economists and analysts have argued that the Inflation Reduction Act will help ease inflation by reducing the deficit by hundreds of billions more under President Biden’s administration. When small businesses have more price stability, from gas to payroll, it’s easier for entrepreneurs to plan and grow their businesses.

Lower cost of medicine for seniors. Many small businesses are owned by seniors. Americans pay 2-3 times more for prescription drugs than people in other developed countries. High value contributes to equity in race and breed health. The Inflation Reduction Act helps close the gap in drug access by improving prescription drug coverage and reducing Medicare drug costs. The law:

  • It covers the $2,000 a year seniors pay for over-the-counter drugs.
  • It saves seniors the amount they pay for insulin at $35 for a month’s supply.
  • It offers several additional free vaccines to Medicare beneficiaries, including the shingles vaccine.
  • It would further reduce the cost of prescription drugs by allowing Medicare to negotiate prices for high-priced drugs and allowing drug manufacturers to pay Medicare faster than inflation.

Expanding economic opportunities for small businesses
The Inflation Reduction Act helps small businesses grow and create good-paying jobs in communities across America.

Double the research and development (R&D) tax credit for small businesses. Pre-revenue startups create jobs and support economic growth through research, discovery and innovation. However, they could not use the R&D tax credit to the same extent as large businesses. This bill levels the playing field and helps encourage high-impact R&D by increasing the refundable research and development tax credit for small businesses from $250,000 to $500,000. Starting in 2023, small businesses can use the credit to reduce payroll taxes and many other business expenses by up to $500,000 a year so they can do what they do best: innovate and market to solve global problems and create jobs to drive our economy forward. .

Enhancing American manufacturing and competitiveness. The legislation opens up opportunities for small businesses and invests in American workers and industry by boosting America’s supply chain in technologies like solar, wind, carbon capture and clean hydrogen. . The legislation includes tax incentives aimed at producing US-sourced materials such as batteries, solar and wind components, and for producing hydrogen such as carbon capture systems and electrolyzers. The law includes key requirements around local resource availability – such as local steel in wind projects – and around wages and apprenticeships to ensure the creation of good-paying jobs.


Supporting local clean energy economies
The bill creates a new Clean Energy and Sustainability Accelerator, which sets up state and local clean energy financing institutions to support the deployment of distributed zero-emission technologies such as heat-pumps, community solar and EV charging. This accelerator expands opportunities for clean energy entrepreneurship and prioritizes more than 50% of its investment in disadvantaged communities.

Expanding rural opportunities. The legislation would significantly expand the Rural Energy for America program, which supports rural small businesses and agricultural producers with clean energy and energy efficiency improvements. The US Department of Agriculture estimates that this expansion will reach more than 41,500 small businesses and farms. The Act will help rural electric cooperatives serving more than 21 million businesses, homes and farms with more than $9 billion to improve resilience, reliability and capacity, including clean energy projects.

Leveling the playing field by reforming the tax code
President Trump and congressional Republicans’ 2017 tax bill exacerbated an unfair tax system. The Inflation Reduction Act of 2022 is an important step toward making our tax code fairer. Increases income:

  • Making sure the super rich and big corporations pay the taxes they already owe.
  • It’s being cracked down on large, profitable corporations with annual profits over $1 billion and currently paying no federal income tax.
  • Imposing a 1% surcharge on corporate stock purchases to encourage businesses to invest.

Thanks to the Act’s transformative investments in the Internal Revenue Service, small businesses and working families can better get the benefits they deserve under the tax code and get their claims filed faster and more efficiently. Treasury Secretary Janet Yellen has directed the Internal Revenue Service not to use any additional funding to increase the share of audited small businesses or households with less than $400,000 from historical levels. This would help any family or small business that makes less than $400,000 a year not to raise their taxes by a cent.

###

[ad_2]

Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here

spot_img

Related articles

New Soundboard Review: Pricing is Not Always the Only Criteria

I actually first read this as alkalizing meaning effecting pH level, and I was like, OK I guess...

Technology Will Help Keep Your Smartphone from Becoming Obsolete

I actually first read this as alkalizing meaning effecting pH level, and I was like, OK I guess...

Hottest Wearable Tech and Smart Gadgets of 2022 Will Blow Your Mind

I actually first read this as alkalizing meaning effecting pH level, and I was like, OK I guess...

Things to Look For in a Financial Trading Platform Environment

I actually first read this as alkalizing meaning effecting pH level, and I was like, OK I guess...