A package of small business tax incentives was passed by the House on June 15, 2010 by a vote of 247 to 170. The Small Business Jobs Tax Relief Act of 2010 (H.R. 5486) includes a 100 percent gain exclusion for qualified small business stock, retroactive Code Sec. 6707A penalty relief and an enhanced deduction for start-up expenses. The House bill is completely off set by new limitations on grantor retained annuity trusts (GRATs) and the cellulosic biofuel producer credit along with a shift in corporate estimated taxes for large corporations in 2015.
It is unclear if the Senate will take up the House bill before its Independence Day recess. House Ways and Means Committee Chair Sander Levin, D-Mich., predicted that the Senate would likely seek to amend the bill but he did not specify how. Senate Democrats also are preoccupied with passing the American Jobs and Closing Tax Loopholes Act (H.R. 4213), which extends a host of temporary tax incentives, and a war spending bill. Many of the provisions in the House bill have been endorsed by the Obama administration.