Small Business Jobs Act to Eliminate Alternative Minimum Tax

On September 27, 2010, President Obama signed the Small Business Jobs Act (SBJA) of 2010. The SBJA is intended to relieve a significant portion of the tax burden held by businesses with less than $50 million in revenue for 2010. 

The two most influential provisions of the SBJA include the extension to a 5-year credit carryback and the offset of the Alternative Minimum Tax (AMT) when applying general business credits. If unused in those years, the credit can be carried forward up to twenty years. Further, if the shareholders are typically limited to general business credits by AMT, the R&D Tax Credit has the ability to reduce their tax liability to zero.  These changes are an immediate and tremendous benefit to small and mid-sized businesses, regardless of profitability in 2010.

For more information on how the Small Business Jobs Act will affect your business, please contact us at 800-915-7120.