Several changes are up for small business in 2017. One of which is the bigger tax breaks for those who will buy equipment. Employers can also now help their staff get a health coverage with a newly signed law.
Under Section 179, small businesses that will make equipment purchases will receive $510,000 deduction compared to last year's $500,000, USA TODAY reported. These include computers, vehicles, manufacturing machines and furniture. The higher tax break is attributed to the inflation.
In addition to the tax break on equipment purchases, small businesses are hoping to see President-elect Donald Trump's promises to materials. During the campaigns, Trump said he would lower taxes, as well as cut back on some regulations, per CBS News.
While small businesses are not required to provide their staff a health care coverage, there are those who still want to do so. Now, a new option is being introduced, called Health Reimbursement Arrangements.
President Barack Obama last month signed into law the 21st Century Cures Act. Under this options, employers with less than 50 workers can reimburse their expenses on health and insurance through the stand-alone HRAs. The limit was set at $4,950 for an individual and $10,000 for family expenses.
Trump also promised to introduce changes in the U.S. healthcare law when he takes office. Some businesses are hoping that such changes would make it easier for them to buy insurance coverages for their staff at a much cheaper rate.
Other small companies are also hoping to secure contracts with the government, particularly as Trump promises to improve the infrastructures in the United States, which translates to more jobs. Meanwhile, some are hoping to see the Department of Labor's overtime rules abolished. It's enforcement on Dec. 1 was put on hold, and small firms are positive it will be canceled as Trump will appoint fast-food company CEO Andy Puzder as the new labor secretary.