Legislation would give small business owners deferral on payroll tax if they open in targeted areas
Congressman Chris Collins (NY-27) is pushing the Main Street Revival Act (H.R. 952), bipartisan legislation which will help promote economic growth and fill vacancies along America’s main streets. Collins is the lead Republican co-sponsor of the legislation in the House.
“If Washington is serious about getting our economy back on track, we need to get serious about supporting American small business,” said Collins. “Encouraging and incentivizing new small businesses, particularly in struggling areas, will be critical to rebuilding our economy and this legislation does just that.”
The Main Street Revival Act would allow a small business to defer payment of payroll taxes for one year after it hires its first employee. The taxes will be paid back in equal installments over the subsequent four years. The deferment would hopefully provide meaningful relief to a new small business or one which is just at the beginning stages of growth, which is traditionally a hard time for my small business owners.
“The ability to defer payroll taxes for one year may be just enough of a break to help a new small business owner hire one more person or purchase a new piece of equipment,” said Collins. “This legislation represents the practical, commonsense solutions Washington needs to take to nurture small business development, create jobs, and spur real economic development in our communities.”
To encourage growth in hard-hit areas, the legislation provides the tax deferral incentive to businesses located in a Historically Underutilized Business Zone (HUBZones) as defined by the Small Business Administration. In NY-27, sections of Batavia, Depew, Lancaster, Lockport, Medina, and Livingston County are designated as HUBZones.
The bill is also limited to true small businesses, those which expect to hire no more than 25 people during the year period for which payroll taxes can be deferred. Lastly, the H.R. 952 makes clear that nothing in the bill will reduce the Social Security or Medicare trust funds.
“Incentives such as the Main Street Revival Act are critical to encouraging small businesses to set up shop in in vacant space in our commercial district,” said Lockport Mayor Michael Tucker. “Small businesses build the economy of our downtown areas and commercial centers. I think any incentive Washington can provide in these uncertain economic times may make the difference between a business opening and a business closing.”
“As the President of the Niagara USA Chamber and a small business owner myself, this kind of legislation is just the support our small business community needs as entrepreneurs look to take a risk and start a business,” said Deanna Brennen. “Small businesses make up the majority of our chamber membership and they are critical to building a better local, regional and national economy.”
Collins is partnering with with Congressman Eric Swalwell , Democrat of California, on the legislation. “Good ideas that help our small businesses know no political party,” said Swalwell. “I welcome Rep. Collins of New York as the lead Republican cosponsor of the Main Street Revival Act. This bill was inspired by walking the Main Streets of my district and talking with business owners – Republicans and Democrats – about ways the federal government can help them get off the ground, hire employees and succeed. This is sensible legislation to speed up local economic development in the neighborhoods that need it most.”
Contact: Grant Loomis @ 716-255-4781