How does a 20% income tax deduction for small business owners sound?
State Sen. Troy Singleton (D-Moorestown) thinks it sounds like a great way to help small business owners in the state.
Singleton, in an effort to build upon his work to uplift the state’s small businesses, introduced legislation earlier this week to provide a 20% income tax deduction for certain business owners.
The bill, S3757, would mimic the federal small business tax deduction, allowing certain business owners to claim a similar deduction on their state tax returns starting in 2023.
Under the federal income tax deduction, incorporated into New Jersey income tax under this bill, income must be under $182,100 for single filers or $364,200 for joint filers. For taxpayers of that limit, IRS rules consider various factors to determine whether a business income qualifies for a partial or full deduction.
It is unclear if the bill will advance.
Singleton, however, made his feelings known.
“Small businesses are the lifeblood of our communities,” he said. “They not only employ our neighbors and give personality to our Main Streets, they give back to the towns they call home and drive our state’s economy.
“This legislation will offer significant tax relief to the small business community, allowing them to invest back in themselves and their employees.”
