Federal Tax Incentives Provided by Small Business Jobs Act of 2010

On September 27, President Obama signed into law the “Small Business Jobs Act of 2010” (P.L. 111-240) (the “Small Business Jobs Act”), which includes a number of important tax incentives for businesses. The recently enacted Small Business Jobs Act includes a wide-ranging assortment of federal tax breaks and incentives for businesses. In addition, because most states largely conform to federal income tax provisions, many of these incentives will be available for state purposes as well.

While a handful of the tax provisions in the Small Business Jobs Act are effective on the day after the bill was signed or in 2011, the vast majority of them are effective retroactively and have an immediate impact on the 2010 tax year. Below is an overview of the tax changes in the Small Business Jobs Act.