WASHINGTON, DC – U.S. Senator Pat Roberts applauded Senate approval of minimum wage legislation that includes small business tax relief and his amendment to make quality child care available to more families.

"In Kansas, small businesses employ the majority of hardworking families," Senator Roberts said. "I often hear from these employers, who agree their workers deserve a fair wage for a fair day’s work. They admit though, that they struggle to offer basic benefits to their employees such as child care. With a mandated increase in the minimum wage, that struggle only grows. I am glad we were able to provide tax relief to 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."

Senator Roberts’ amendment creates a short-term, flexible grant program to encourage small businesses to work together or with other local child care agencies to provide child care services for employees. Small businesses will be eligible for grants up to $500,000 for start-up costs, training, scholarships, or other related activities. Businesses, however, will be required to match federal funds to encourage self-sustaining facilities well into the future. The program is authorized at $50 million over five years and sunsets in 2012.

"In many small Kansas towns such as Dodge City," Roberts said, "child care facilities can be scarce. This amendment would alleviate the strain on working families who often have to close the door on the opportunity to expand their income because of the lack of child care options in their communities."

Small businesses employ half of all private sector employees and created between 60 and 80 percent of net new jobs annually over the last decade, according to the Small Business Administration. However, small businesses are more vulnerable to the impact of increased costs. The Congressional Budget Office estimates that the minimum wage increase would impose $4 billion in new costs on the private sector in 2009 and $5.7 billion in 2010, with the increased costs extending at roughly $5 billion each year. Small businesses would incur the bulk of these costs, and they could be forced to lay off workers if offsets are not provided.

The following tax relief provisions were included in the legislation:

• Expensing- A one-year extension of a provision allowing small businesses to combine as much as $112,000 in expenses into one annual tax deduction.
• Leasehold Improvements- An extension through March 31, 2008, of the provisions that allow property owners to more quickly deduct the cost of making improvements to a restaurant or to leased property. Also, extends the provision to apply to improvements made to owner-occupied retailer space and for the construction of new restaurants.
• Cash Method of Accounting- A permanent change to the tax code that will allow more businesses to simplify their bookkeeping by allowing them to use the cash method of accounting for tax purposes.
• S Corp Reforms- A modification to the standards that allow small businesses to qualify for or stay within the S Corp tax rules.
• Work Opportunity Tax Credit- A five-year extension of the tax credit provided to employers who hire workers who have experienced barriers to entering the workforce. Also, a modification to the work opportunity tax credit to include a tax credit for employing veterans disabled after the September 11, 2001 attacks.

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