House bill looks to help small businesses
COLUMBIA - A five-year extension on tax incentives for small businesses was officially approved by the Missouri Legislature on May 11.
Rep. Denny Hoskins, R-Warrensburg, sponsored House Bill 1870 which passed in the House earlier this year. It's supposed to help small businesses stay open longer.
However, some small business owners told KOMU they were altogether unaware of it.
“I hadn’t heard of it before. I had heard similar things but generally it’s for big companies,” said Mark Reynolds, owner of Country Meat Shop in Moberly.
Under the bill’s regulations, businesses with fewer than 50 employees could earn a tax deduction based on the jobs they create. The tax deduction would either be $10,000 or $20,000. All the business would have to do is pay their newly hired employee above the county’s average wage in order to qualify.
If the business creates a job that pays above the average county wage and includes health insurance, they would be given a $20,000 tax deduction.
Some small business owners see this as an opportunity to grow their store and business.
“[The deductions] possibly [can be used] in the future, when I add an employee or two,” Reynolds said.
State Director for the National Federation of Independent Businesses (NFIB) Brad Jones said small businesses are usually too busy to look for these deductions when they come around every so often.
“Small businesses are so busy running their businesses that often times that they’re not made privy to some of the laws that we pass in Jefferson City,” Jones said.
President of Mid-America Dental and Hearing Center Scott George agrees that while the deductions are generally a good thing for small businesses, they are difficult to apply for sometimes.
“A lot of [small businesses] won’t take advantage of it because it does take work to qualify,” George said.