Nevada senator aims to increase tax deductions for small businesses
Sen. Jacky Rosen introduced legislation today that would increase startup tax deductions when starting a new business.
The Nevada senator, alongside Senate Committee on Small Business and Entrepreneurship Chair Jeanne Shaheen, D-New Hampshire, and Sen. Tammy Baldwin, D-Wisconsin, introduced the Tax Relief for New Businesses Act, which would increase the startup tax deduction from $5,000 to $50,000.
The bill will allow businesses to write off more expenses to compensate for the increasing cost of starting a business, according to Rosen’s office. Small business owners can only deduct up to $5,000 in startup costs the first year, though a survey from Shopify found business owners spend an average of $40,000 to get their businesses started.
“This is a common sense step to make this tax deduction practical and helpful for startups, and I’ll keep working to support Nevada’s entrepreneurs and small business owners,” said Rosen, who is a member of the Committee on Small Business and Entrepreneurship, in a statement.
The bill is supported by some business organizations, including the Reno + Sparks Chamber of Commerce, the Main Street Alliance and the Center for American Entrepreneurship.
“The Reno + Sparks Chamber of Commerce is enthusiastic about Senator Rosen’s bill, that if passed, would open doors to hundreds of entrepreneurs who dream of developing and owning a small business in our community,” said Ann Silver in a statement. “The Tax Relief for New Business Act would stimulate commerce and enable our small business economy to be determined by those with the grit and determination to be successful.”
Contact Jessica Hill at jehill@reviewjournal.com. Follow @jess_hillyeah on X.