According to a report from CNN Money, President Barack Obama is supporting a proposal to eliminate capital gains taxes on investments made in 2010 and 2011 in certain small businesses. The bill has already been passed in the House of Representatives and will soon be taken up in the Senate.
At a town meeting in New Hampshire, Obama said these tax incentives are “particularly critical right now, because bank lending standards have tightened since the financial crisis and many small businesses are still struggling to find loans,” reports the source.
Angel investors who invest in fledgling, private companies would be eligible for the tax breaks, says CNN Money. Additionally, qualifying companies are C corporations only with assets of less than $50 million.
There are also eligibility requirements, all of which favor entrepreneurs forming companies with high job-growth potential, such as manufacturing or technology.
With this in mind, entrepreneurs considering business incorporation may be interested in learning the benefits of C corporations. In addition to the tax credits that come with incorporation, entrepreneurs could soon find investors are more willing to provide funds to these companies.
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