WASHINGTON, DC – U.S. Senator Pat Roberts today announced the Senate Committee on Finance approved a bill to provide tax relief for small businesses, encouraging them to create new jobs and grow the economy.

"I am pleased to support this legislation to provide tax relief to small businesses," Senator Roberts said. "A critical component of our economy, this bill will help small businesses offset the costs for the purchase of new equipment and machinery and for making improvements to their business property. The money saved can then be re-invested in the business or used to create new jobs, in any case, everyone benefits."

The following are components of the bill, the Small Business and Work Opportunity Act:

• Extends for one year the Section 179 expensing allowance for small businesses;
• Extends through March, 2008 a provision that allows property owners to more quickly deduct the cost of making improvements to a restaurant or to leased property. It also extends the provision to apply to improvements made to owner-occupied retailer space and for the construction of new restaurants.
• Permanently allows more businesses (those with up to $ 10 million in gross receipts) to use the cash method of accounting as opposed to the more complicated accrual method;
• Makes several changes to "S" corporation provisions;
• Extends for five years of the Work Opportunity Tax Credit provided to employers who hire workers who have experienced barriers to entering the workforce. The credit was modified to make employers who hire veterans disabled after September 11, 2001 eligible for the credit.

The bill now goes to the full Senate for a debate and vote.

As a Senate Finance Committee member, Kansas small businesses and their employees will be a top priority and concern for Senator Roberts this year.