The legislation is allowing investors for excluding the profits in the sale of particular small business stock from their income with the intention of tax when a stock is on hold for more than 5 years. In this way it is encouraging investment in small businesses.
Owners can get to access more private capital to get finance for business expansion and for hiring new workers through the help of this policy.
The legislation has also reduced the burden of tax like Alternative Minimum Tax for small businesses. The legislation is allowing them to deduct general business tax credits to compensate from the previous 5 years.
The small businesses would also be able to consider the general business credits against the Alternative Minimum Tax. This will free up capital for business expansion and job growth.
There is amount doubling of start up expenditures by legislation which may be subtracted by someone beginning a new small business. It makes easier for opening the new businesses.