Small Business Jobs Act 2010 Law and Legal Definition

President Obama signed Small Business Jobs Act of 2010 into law on September 27, 2010. The Act expands lending to small businesses, creates a pilot program for small businesses seeking federal contracts and creates a pilot program to encourage small business export activities; all of which will be administred through the Small Business Administration. The Act also provides a number of tax breaks and revenue raisers that impact business owners, the self-employed, retirement investors, and landlords.

The centerpiece of the Act is the creation of a $30 billion lending facility that would direct taxpayer money to regional banks on the condition they lend it out to small businesses. The Act expands bonus depreciation for one year. This tax deduction enables a business to expense fifty percent of the cost of new equipment, such as computers or software, in the year of purchase. The remaining cost is spread out, or depreciated, over the normal life of the equipment. The Act also enables the fair market value of personal use of a cell phone or other similar device provided to an employee predominantly for business purposes to be excluded from gross income.