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The bill contains small-business tax provisions supported by NSBA. UPDATE | After passage in the House, bipartisan tax deal still faces significant hurdles in the Senate, with a number of Senate Finance Committee Republicans publicly calling for hearings and expressing skepticism in the bill’s current form. RELATED | NEWS | Tax Deal Faces High Hurdles in Senate This week, Congress is set to vote on the new, bipartisan, bicameral Tax Relief for American Families and Workers Act of 2024. Negotiated by Senator Ron Wyden (D-Ore.) and Rep. Jason Smith (R-Mo.), the massive, multibillion-dollar bill is expected to fulfill multiple NSBA priorities we have been fighting for. Thanks to our advocacy, the bill retroactively reinstates non-amortized research and development deductions under Section 174 for the 2022 and 2023 tax years and extends them through 2025. Additionally, it raises the limit on depreciable asset deductions by $290,000 under Section 179. NSBA has fought hard in Congress for these provisions. Additionally, it will give small businesses the opportunity to increase jobs, safely participate in the Small Business Innovation Research program, and afford the investment needed to succeed. Given NSBA’s work informing these provisions, we’re asking for your help getting these amended sections over the finish line.  Please take a moment to complete our Action Alert to contact your Members of Congress directly to urge their support for passage of the tax bill. Follow NSBA as we continue tracking this important legislation.

Cybersecurity made simple with NSBA's corporate partner, CIS Controls. We've all heard the term “cyber hygiene” before. It's been around for at least a couple of decades. The idea is that poor cyber hygiene is behind most cyber attacks. Reality has shown this notion to be true. Today, almost all successful attacks exploit instances of “poor cyber hygiene,” including: · Failure to patch known vulnerabilities · Poor configuration management · Inefficient management of administrative privilege In this article, we'll examine what's behind these instances of poor cyber hygiene and explain how you can use security best practices at the Center for Internet Security (CIS) to counteract them. Understanding Poor Cyber Hygiene Poor cyber hygiene doesn't mean that system operators and users are lazy or don’t care. Rather, it's that they're overwhelmed. First, they're tasked with navigating new technology, marketplace claims, and oversight/regulations that affect your environment. All of these forces make their jobs more confusing and difficult, which affects their ability to prevent, detect, and respond to cyber threats. Second, they're dealing with cyber threat actors who are developing sophisticated methodologies to take advantage of this confusion. For example, they're seeing a rise in attempts to exploit legitimate functionality within your systems for the purpose of evading detection. Again, this complicates all stages of cyber defense. Clearly, your system operators and users need help without complexity. Any large-scale security improvement program needs a way to bring focus and attention to the most effective and fundamental things that need to be done. Understanding Essential Cyber Hygiene CIS goes beyond "cyber hygiene" as a tagline. It does this by aligning what it calls "essential cyber hygiene" to Implementation Group 1 (IG1) of the CIS Critical Security Controls (CIS Controls). IG1 is a subset of the CIS Controls, which are prioritized, prescriptive, and simplified security best practices that can help you improve your cyber defenses. By enacting IG1, you implement simple, baseline actions that strengthen your enterprise's cyber defenses against ransomware, malware, and other common cyber threats. You also build a foundation for adapting to new technologies and changes in the cyber threat landscape. Community and Cyber Defense Cybersecurity defenders are already flooded with information about attackers, vulnerabilities, and malware. Most of them don’t have the time, expertise, or interest to stay up to date with the latest cyber threat research. They just want a way to focus on simple, impactful action. Through the consensus-based security best practices of IG1 and the rest of the CIS Controls, you can focus on the most important things to secure your enterprise, to support your system operators and users, and to effectively respond to a changing world. Don't delay: Download the CIS Controls

Compromise will be key to ensure common sense tax provisions for small business this year. The bipartisan tax deal faces significant hurdles in the Senate, as a number of Senate Finance Committee Republicans have publicly called for hearings and expressed skepticism in the bill’s current form. RELATED | PRESS | NSBA Applauds House for Bipartisan Passage of Tax Relief Bill The Finance Committee holdouts are concerned, firstly, that the bill was written behind closed doors and without their input, and secondly some appear concerned that any tax deal would be seen to be handing a legislative victory to President Biden in a fiercely competitive election year. The overriding concern here is that while the bill passed out of the House overwhelmingly in its current form, any changes made by the Senate are likely to be a “poison pill,” dooming the whole deal, as the House would have to agree to the changes - which it is almost certainly unwilling to do. RELATED | ACTION ALERT | Urge Congress to Pass Tax Bill Moreover, as the Senate currently wrangles with international aid and border negotiations, and with the bifurcated March 1st & 8th funding deadlines approaching, the momentum behind the bill may stall. Follow NSBA as we continue tracking this tax legislation on Capitol Hill.

Much-needed tax relief for small-business. FOR IMMEDIATE RELEASE Feb. 1, 2024 CONTACT | Molly Day 202-552-2904, mday@nsba.biz NSBA Applauds House for Bipartisan Passage of Tax Relief Bill Washington, D.C. – NSBA applauds the House for passing on a broadly bipartisan manner (357-70) the Tax Relief for American Families and Workers Act. This major piece of tax legislation includes several key priorities which NSBA has fought for, including allowing Section 174 expenses to be retroactively deductible beginning with tax year 2022 rather than amortized over a five-year span. “I applaud every Member of Congress who voted for this bill—it is a major win for America’s small businesses,” stated NSBA President and CEO Todd McCracken. “I urge the Senate to follow this example of strong, bipartisan leadership and move quickly on passing this bill.” Among the major wins in this bill, several of which NSBA has been instrumental in highlighting and prioritizing: a retroactive reinstatement of non-amortized research and development deductions under Section 174 for the 2022 and 2023 tax years, extended through 2025; and an increased limit on depreciable asset deductions by $290,000 under Section 179. “NSBA has fought hard in Congress for these provisions, and this bipartisan bill will give small businesses the opportunity to increase jobs, safely participate in the Small Business Innovation Research program, and afford the investment needed to succeed,” stated McCracken. Celebrating more than 85 years in operation, NSBA is a member-driven nonpartisan organization advocating on behalf of America’s entrepreneurs. NSBA's 65,000 members represent every state and every industry in the U.S., and we are proud to be the nation’s first small-business advocacy organization. Please visit www.nsba.biz and follow us at @NSBAAdvocate. ###

Think the CTA doesn't affect you? Think again. Last week, NSBA President and CEO Todd McCracken and a team of experts hosted a fireside chat on the Corporate Transparency Act (CTA) and how this cumbersome law is already costing small-business owners. According to our member poll taken during the webinar, more than 80 percent of small-business owners have yet to file the new paperwork required under the CTA. Think the CTA doesn't affect you. Think, and watch our fireside chat recording, again:

The carousel never stops turning - at least until March. While Congress has passed another short-term stopgap funding measure extending the potential shutdown deadlines into March, NSBA is still actively monitoring the government funding situation. We will continue to push for commonsense solutions to minimize the impact of any possible shutdown on the small business community, including retroactive back pay for contractors and measures to ensure stability in SBA lending operations. NSBA President & CEO Todd McCracken’s letter urging Congress to take action can be found here.

Common sense, functioning tax laws are vital for small business. FOR IMMEDIATE RELEASE Jan. 19, 2024 Contact |Molly Day 202-552-2904 mday@nsba.biz Washington, D.C. – NSBA applauds the House Ways and Means Committee for the bipartisan passage of the Tax Relief for American Families and Workers Act. This major piece of tax legislation includes several key priorities which NSBA has fought for, including allowing Section 174 expenses to be retroactively deductible beginning with tax year 2022 rather than amortized over a five-year span. Below is a statement from NSBA President and CEO Todd McCracken. “NSBA has consistently warned that forcing innovative, small companies to amortize R&D expenses over five years is a massive burden, and I want to thank every member of the Ways and Means Committee who voted to fix the issue. “This bill has several important pieces for America’s small businesses: an increase in Section 179 deductions, increased bonus depreciation back up to 100 percent, and a higher threshold for 1099 submission from its current $600 level to $1,000. “I hope the rest of Congress follows this example of strong, bipartisan leadership and moves quickly on this bill—America’s small businesses are counting on them.” Celebrating more than 85 years in operation, NSBA is a member-driven nonpartisan organization advocating on behalf of America’s entrepreneurs. NSBA's 65,000 members represent every state and every industry in the U.S., and we are proud to be the nation’s first small-business advocacy organization. Please visit www.nsba.biz and follow us at @NSBAAdvocate. ### UPDATE | On Jan. 23, the House released the official text of the bipartisan tax package which cleared the Ways and Means Committee by a whopping 40-3 margin last Friday. This procedural step means that House leadership is advancing the bill quickly, and as a result, early next week we expect consideration of the bill on the House floor. The bill will almost certainly be considered under what’s called a “suspension of the rules” meaning that instead of the usual 218-vote simple majority, the tax deal will need to garner at least a 2/3 majority to pass the House. NSBA strongly supports the package, as it contains critical small business provisions, chief among which is the Section 174 R&D amortization fix. NSBA President & CEO Todd McCracken’s statement commending the Ways and Means Committee’s passage of the bill can be found here.

Get started on your Beneficial Ownership Information filing today! On January 1, 2024, a new federal reporting requirement went into effect that requires an estimated 33 million small businesses to file a Beneficial Ownership Information Report with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN). Every small business owner, law firm or organization with qualifying clients or entities needs to check whether this applies to them and if so, file accordingly. Non-compliance can result in severe penalties, including fines of up to $10,000 and even jail time. CT Corporation is ready to help you, whether you have one entity or hundreds.

Congress continues to discuss a tax package, including a number of provisions pertinent to small business. Over the weekend, a bipartisan group of House and Senate negotiators hammered out a deal on a major $78b tax package. A number of key priorities which NSBA has fought for on Capitol Hill are addressed in the draft deal, most notably the issue of immediate R&D expensing, with domestic Section 174 expenses set to be retroactively deductible beginning with tax year 2022. While the change is not permanent in the new legislation, it would be secured through the 2025 tax year, amounting to a four-year extension of this critical incentive. We are pleased to see lawmakers take this first step, and while this is an important victory for America’s high-innovation small businesses, NSBA will continue to fight for permanency. Other Key Provisions: Congressional leaders additionally included an increase in Section 179 deductions, raising the maximum allowable deduction from $1.16m to $1.29m, allowing an additional $130,000 in possible deductions. This is paired with a corresponding $330,000 increase in the total equipment cap from $2.89m to 3.22m. Importantly: both provisions are set to increase with inflation beginning in 2025. Bonus depreciation also made the cut: under the proposed deal bonus depreciation (reduced to 80% for tax year 2023 and 60% for tax year 2024) will retroactively restored to 100%, beginning in tax year 2023 and ending at the close of 2025. For employers who utilize independent contractors, the bill also raises the threshold for 1099 submission from its current $600 level to $1,000. This is an important reminder as well that recent Department of Labor rule changes regarding the classification of independent contractors go into effect on March 11, 2024. All of these changes were paired with increases in the Child Tax Credit (also known as the CTC) that Democrats preconditioned negotiations upon, alongside disaster relief measures and an expansion of the Low Income Housing Tax Credit. Despite the broad, bipartisan appeal of the compromise legislation, as well as the agreement between House Ways and Means Chairman Jason Smith (R-Mo.) and Senate Finance Committee Chairman Ron Wyden (D-Ore.) the deal still faces obstacles in both Chambers. Minority-party members of both relevant committees have expressed their displeasure with elements of the deal, and look to be angling to secure additional concessions, both believing their side holds the leverage in protracted negotiations.  Moreover, legislators face significant timing challenges, with initial hopes that any deal might become law before the January 29th start of IRS tax season looking increasingly remote. NSBA, along with our partners, will continue to advocate for passage of this deal, and keep you apprised of any updates as the bill progresses.

Supporters of the Resolution say the new joint employer standard could harm jobs and dramatically increase costs to employers and consumers. TODAY Congressional House Members voted to pass a resolution overturning the National Labor Relations Board (NLRB) new joint employer rule. RELATED | NLRB Proposing Rule to Expand Joint-Employer Statuses The NLRB rule, set to take effect Feb. 26, makes it easier for multiple companies to be jointly liable for labor law violations and be jointly required to bargain with employee unions. Passing 206-177, the House resolution rejects the NLRB rule and is making its way to the Senate under the Congressional Review Act. This procedural maneuver helps the resolution to avoid the typical 60 votes required for most legislation in the Senate.  Legislative action of this type can be also initiated by the minority party, circumventing the majority leader’s ability to block it. Unfortunately, a resolution doesn’t carry the weight of legislation and is rather a statement of opinion—so ultimately this will not prevent the NLRB rule from going into effect. Although the resolution passed the House largely among party lines, a number of Democrats joined the majority Republicans to support the measure. RELATED | House Panel Moves Resolution to Block NLRB Joint Employer Rule Opponents of the rule have said it could harm jobs and dramatically increase costs to employers and consumers. Some senators have also said the labor board’s move could have a negative impact on older Americans by raising regulatory costs for senior living facilities that often contract out work to service providers—and would be considered joint employers under the rule. Additionally, the resolution is vulnerable to a presidential veto and could be rejected by President Joe Biden. Follow NSBA as we continue tracking this change from the NLRB on Capitol Hill and across Washington.

Final rule published on classifying workers as employees or independent contractors. Rescinding a 2021 independent contractor rule, the U.S. Department of Labor (DOL) announced this week a finalized update to the classification standard, a rule which NSBA cautioned against. “The previous 2021 rule that DOL has rescinded was a simple, clear, and effective solution to worker classification problems,” stated NSBA President and CEO Todd McCracken. “Unfortunately, this new far-reaching standard threatens to muddy the water and make contracting relationships difficult both for small businesses employing contractors, and for the independent contractors themselves.” The new rule requires an expanded, multi-factor economic realities test that considers the working relationship to determine whether the worker is truly in business for themselves. The rule will be a return to a “totality-of-the-circumstances” analysis, evaluating all of the factors involved in the working relationship equally. NSBA opposed the change and urged further study and delay by DOL. This massive change to the worker classification rules not only will add burdens and complexity to small businesses, but the nonstop back-and-forth with this particular area of labor law created instability for small employers.

Shutdowns harm small business. NSBA urges Congress to compromise on a spending plan. Over the weekend, Congressional leaders announced that they had taken an important first step in paving the way to funding the government and averting a looming shutdown. House Speaker Mike Johnson (R-La.) and Senate Majority Leader Chuck Schumer (D-N.Y.) told lawmakers on Sunday that they had reached agreement on an overall “topline” number for a funding package of $1.59 trillion. While this agreement does come with short-term funding guarantees for several agencies, crucially it also does not prohibit the attachment of “policy riders” designed to implement political priorities. In this compromise both Republicans and Democrats have scored something important, though Speaker Johnson is still likely to face headwinds in the increasingly conservative House Republican Conference. Critically, now the job of crafting the individual bills to meet that $1.59 trillion threshold can begin in earnest. However, despite the progress Johnson and Schumer have made, there is still trouble on the horizon. In protest of Johnson’s dealmaking, on Wednesday, 13 conservative House Republicans voted with Democrats against passing a rule for consideration of a number of bills this week (a vote on a rule is a simple procedural motion that allows the House to outline the specific process under which bills will be considered). Rarely is a rule not passed, and Johnson’s speakership may be in peril as the intractable challenges of governing a fractious party with a wide ideological span that sank former Speaker Kevin McCarthy (R-Calif.) rise again. As a reminder, the current continuing resolution (also called a CR) bifurcated the funding deadlines as follows: January 19, 2024, Expiration: Agriculture and FDA, Energy and Water, Military Construction and the VA, and Transportation and the Department of Housing and Urban Development. February 2, 2024, Expiration: Commerce, Justice, & Science, Defense, Financial Services and General Government, Department of Homeland Security, Department of the Interior and Environment, Department of Labor, Health and Human Services, Department of Education, Legislative Branch, and State and Foreign Operations.