WASHINGTON, June 15 The U.S. House of
Representatives on Tuesday approved a package of small business
tax relief that backers hope will help create new jobs.
The bill, which would eliminate capital gains taxes on
investments in small businesses, passed on a vote of 247-170.
It is a companion bill to legislation backed by President
Barack Obama that the House is to consider on Wednesday. That
bill would create a $30 billion fund to encourage community
banks to lend to small businesses.
"Small businesses need capital to create jobs and lead our
economic recovery and these bills contain important tax cuts
and lending opportunities that will help give small business
owners the resources and flexibility they need to help their
businesses grow," said House Ways and Means Committee Chairman
The bill gives small businesses a bigger tax break on start
up costs and creates a program to help small businesses
struggling to repay loans.
The $3.5 billion in tax breaks would be offset in part by
changes in rules for grantor retained annuity trusts and by
tightening rules on $1.01 per gallon tax credit on the
production of biofuels from cellulosic feedstocks.
The bill would make highly corrosive fuels such as crude
tall oil, created as a waste product from paper manufacturing,
ineligible for the tax credit.
The bill is to be joined with the legislation on small
business lending before the package is sent to the Senate for
(Reporting by Donna Smith; Editing by Chris Wilson)