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Major tax relief and reduced reporting burden for small businesses and investors

This Act introduces significant tax code changes aimed at boosting small business growth and investment. Key provisions include raising income reporting thresholds (reducing 1099 forms), increasing limits for immediate equipment deductions, and establishing new investment zones in high-poverty rural areas. Citizens operating small businesses will benefit from less administrative burden and greater tax deduction opportunities.
Key points
The threshold for reporting payments to contractors (1099 forms) is raised from $600 to $5,000, reducing paperwork for small businesses.
The reporting threshold for third-party payment platforms (e.g., gig economy income) is restored to $20,000 and 200 transactions, simplifying tax compliance for casual sellers.
The limit for immediate deduction of business equipment costs (Section 179 expensing) is increased from $1 million to $2.5 million, encouraging businesses to purchase new assets.
New 'Rural Opportunity Zones' are established, offering tax deferral and exclusion on capital gains reinvested in these designated, high-poverty rural areas.
Tax exclusion for gains from Qualified Small Business Stock (QSBS) is made easier by reducing the required holding period to 3 years (for partial exclusion) and expanding eligibility.
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Expired
Citizen Poll
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Additional Information
Print number: 118_HR_3937
Sponsor: Rep. Smith, Jason [R-MO-8]
Process start date: 2023-06-09
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Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Small Business Jobs Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_3937.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2023-06-09.

What are the main provisions?

Key points include:

  • The threshold for reporting payments to contractors (1099 forms) is raised from $600 to $5,000, reducing paperwork for small businesses.
  • The reporting threshold for third-party payment platforms (e.g., gig economy income) is restored to $20,000 and 200 transactions, simplifying tax compliance for casual sellers.
  • The limit for immediate deduction of business equipment costs (Section 179 expensing) is increased from $1 million to $2.5 million, encouraging businesses to purchase new assets.
  • New 'Rural Opportunity Zones' are established, offering tax deferral and exclusion on capital gains reinvested in these designated, high-poverty rural areas.
  • Tax exclusion for gains from Qualified Small Business Stock (QSBS) is made easier by reducing the required holding period to 3 years (for partial exclusion) and expanding eligibility.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Smith, Jason [R-MO-8].

What is the latest detailed status?

The latest detailed status is: Placed on the Union Calendar, Calendar No. 100.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-30.

CATEGORIES

Taxes Economy Public Investments