News from Ranking Member Sam Graves and Committee Republicans:
(Please send any member media activity to angela.landers@mail.house.gov)

• Ranking Member Sam Graves (R-MO) on tax relief for small businesses in St. Joe News.

• Rep. Vern Buchanan (R-FL) spoke out on the House floor on health care and small business.

• Rep. Vern Buchanan (R-FL) will hold Myakka City and Wauchula Town Halls this weekend to discuss health care and jobs.

• Rep. Luetkemeyer (R-MO)“Senate Cap-and-Tax Legislation Just As Devastating to Families As Flawed House Bill”

• Rep. Mary Fallin (R-OK) “Says Economy Must be Stabilized for Future Generations”

Must-Reads from the Week:

• Dallas Morning News: Survey: Most small business owners say recession isn't over for them

• New York Times: Will Health Care Reform Encourage Small Businesses to Drop Health Coverage?

• Wall Street Journal: The Credit Crunch Continues

• US News & World Report: The Baucus Healthcare Plan: What Small-Business Owners Need to Know

Administration and the SBA:

• White House officials this week called on lawmakers to pass a health care reform bill by Thanksgiving.  This request prompted Democrat Senate Leader Reid to cancel a week long Columbus Day recess.  Prior targets to wrap up on the healthcare debate were scheduled for just before the end of the year, but concerns have been growing about efforts slipping into an election year making it nearly impossible to pass a bill.    

Review of House Activity:

• On Thursday, the House of Representatives passed the conference report for the FY10 Energy and Water spending bill.  The $33.5 billion price tag is a $204 million increase from FY09, but $2.4 billion or 7.8% higher than in FY08.  The measure’s final obstacle before being signed into law by the President is the Senate.

• On Tuesday, the House of Representatives passed legislation to temporarily extend programs under the Small Business Administration (SBA). The amended bill, H.R. 3614, provides for a clean extension of all SBA programs through October 31.  The President signed the bill into law. 

 

Legislation and Letters Circulating Around the House:
(If you would like to publicize your small business effort in Congress, please email Paul Sass at Paul.Sass@mail.house.gov)

• Rep. Schock (R-IL) and Rep. Boswell (D-IA) have recently introduced H.R. 2672, the Help Veterans Own Franchises Act - This legislation will assist veterans in becoming small business owners by incentivizing franchisors to offer potential veteran franchise owners discounted franchise fees (fees for training and legal costs associated with using the franchisors trademark).  Operating a small business under a franchise’s brand provides emerging entrepreneurs with important risk protections, a ready-made clientele, additional resources and guidance on how to operate a successful business.  However, such benefits are often outside the reach of veterans due to expensive franchise fees.  H.R. 2672, the Help Veterans Own Franchises Act encourages Veteran small business franchise ownership by incentivizing franchisors to offer discounted franchise fees to qualified veterans through the establishment of a tax credit worth 50% of the total franchise fee discount offered by the franchisor to the franchisee.  The legislation also establishes a tax credit for the franchisee veteran, equal to 25% of the remaining franchise fee.  This legislation is endorsed by the International Franchise Association. If you would like more information, or to become a cosponsor of H.R. 2672, the Help Veterans Own Franchises Act, please contact Mark Roman in Rep. Schock’s office at mark.roman@mail.house.gov or 225-6201.

• Rep.  Boozman (R-AR) Seeks Co-Sponsors for the Veterans Retraining Act of 2009 (H.R. 1168) - Studies have shown that our veterans are some of the most dedicated and loyal workers in the entire U.S. workforce.  They come to a job with leadership and teamwork skills, and the ability to overcome difficult obstacles to get the job done.  Recent reports from the U.S. Bureau of Labor Statistics indicate that unemployment among veterans has grown from 510,696 in August of 2008 to 933,000 in August of 2009.  This is a shocking increase of 422,304 veterans or 82% in just one year.  Veterans who are between 35 to 54 years old – the prime earning years – comprise 534,000 of the total number of unemployed veterans.  It is for this reason, that Congressman Boozman has introduced the H.R. 1168, the Veterans Retraining Act of 2009, which authorizes a living stipend to eligible veterans to encourage their participation in training programs offered by the U.S. Department of Labor (DOL).  Eligible veterans must have been unemployed for at least four consecutive months, enrolled in the DOL training program, and be ineligible for other veterans' education or training assistance.  H.R. 1168 also authorizes a moving stipend of up to $5,000 to assist these newly retrained veterans to move to an area where their upgraded skills are in demand.   If you wish to become a co-sponsor of this legislation please contact Jon Clark with the Committee on Veterans’ Affairs at jon.clark@mail.house.gov or at 225-3527.

 

Review of Senate Activity:

• On Wednesday the Senate approved the FY10 Legislative Branch conference report by a 62-38 margin.  The bill now goes to the President for his signature.  Besides funding Congress for the next fiscal year the measure also included a 30 day extension that will keep most discretionary government programs operating at FY09 levels through October 31st effectively preventing a government shutdown. 

• The Senate continues consideration of the FY10 Defense spending measure. 

• On Thursday, the Senate Committee on Small Business and Entrepreneurship held a roundtable examining minority entrepreneurship programs and opportunities for expansion.   The roundtable was focused on ensuring that minority-owned businesses are included in the process and receive their fair share of contracting dollars. 

House Small Business Committee hearing summary this week:

• On Wednesday, September 30, 2009 at 10:00 am in Room 2360 of the Rayburn House Office Building, the House Committee on Small Business held a hearing to examine the temporary tax provisions known as “extenders.”  Witnesses were Rachelle Bernstein, Vice President and Tax Counsel, National Retail Federation, Washington, DC; Dina Dwyer-Owens, Chairwoman and CEO, The Dwyer Group, Waco, TX, representing the International Franchise Association; Manning Feraci, Vice President of Federal Affairs, National Biodiesel Board, Washington, DC; John Frenz, Frenz & Schmidtknecht, Inc., Vincennes, IN, representing the National Restaurant Association; and Keith Hall, National Tax Advisor, National Association for the Self-Employed, Grapevine, TX.

The witnesses urged Congress to extend several of the most commonly utilized tax provisions, including the 5 year Net Operating Loss Carryback; the 15 year leasehold improvement depreciation; the Work Opportunity Tax Credit; biodiesel tax credit; and the Alternative Minimum Tax “patch.”  Several witnesses mentioned that the uncertainty of whether tax credits will be renewed, and the fact that they are usually renewed for only one year, is particularly hard on small businesses, which need to plan.  Ms. Bernstein said the shorter 15 year depreciation schedule helps to create jobs, because retailer renovations benefit the construction and related industries.     

Mr. Feraci expressed support for restructuring the diesel blenders excise tax credit to a production excise tax credit. Explaining her support for repeal of the estate tax, Ms. Dwyer-Owens said that if her mother had not been living when her father died suddenly of a heart attack, her family could have lost their business.

The Chairwoman and Ranking Member Graves both voiced support for extending tax provisions that help small businesses.  Ranking Member Graves said it is particularly important to address the AMT, because so many small business owners claim business income on their individual returns.  Determining whether the AMT applies requires a second set of tax forms and calculations, which are time consuming and expensive to complete.  Ranking Member Graves also noted that he has introduced legislation, H.R. 664, to make the 2001 and 2003 tax relief permanent.  At the hearing, he said making these benefits permanent would give small firms the certainty to hire more workers and purchase new equipment. 

The Committee may revisit expiring tax these issues later this year, or again next year if the provisions are renewed for just one year.

Other Small Business off the Hill:

• The National Small Business Association released the results of its survey on health care reform.

• NEMA’s Electroindustry Business Confidence Index (EBCI) for current North American conditions increased for a third straight month.

Looking Forward:
House Small Business Committee hearings next week:
• Full Committee Hearing, October 7, 2009, 1:00 pm entitled, “The State of the Nation’s Housing Sector: An Examination of the First Time Buyer’s Credit and Future Policies to Sustain a Recovery.” 2360 Rayburn House Office Building.