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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.

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.

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.

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.

If you think the CTA doesn't affect you, think again. Join NSBA on Thursday, Jan. 25 at 2:00 p.m. ET for a fireside chat to get the latest on what’s happening with the Corporate Transparency Act (CTA). NSBA President Todd McCracken will be joined by CTA expert Tim Terry, General Counsel, Hartz Capital, Inc. where they will provide an update of the NSBA lawsuit over the CTA, what reporting means now that it is in effect for new business formations, how the reporting process is working so far, and efforts on Capitol Hill to delay and repeal the CTA. Todd and Tim will leave ample time for questions and will boil down what this very complicated law and reporting process means for your business. Please register here.

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.

Much in store for small business in 2024, including new NSBA Board Leadership. FOR IMMEDIATE RELEASE Jan. 8, 2024 Contact Molly Day202-552-2904 mday@nsba.biz Marilyn Wilson Lund Heads New Leadership at NSBA Washington, D.C. – The National Small Business Association (NSBA) is kicking off 2024 with new Board leadership led by Marilyn Wilson Lund, founding partner of WAV Group, a full service consultancy in and the leading provider of consumer research in residential real estate and President of RETechnology.com, North America’s largest real estate technology education portal. Wilson Lund has been an active member of the NSBA Board of Trustees for many years. “Marilyn brings to the table her well-honed talent for marrying big picture growth with strategic operational improvements and has helped our organization not only build upon our core competencies, but urged us to seek additional avenues for content, outreach and advocacy,” stated NSBA President Todd McCracken. “Marilyn’s expertise at understanding where an organization is today and helping it move to where it needs to be down the road will be a tremendous asset as we begin implementing our strategic plan in the coming two years.” Joining Ms. Wilson in leadership positions on the NSBA Board of Trustees for 2024 are: Michael Canty, Allow Bellows and Precision Molding in Cleveland, Ohio as First Vice Chair; Malcolm Prouty, LeProuty Properties in Austin, Texas, as Treasurer; Bill Belknap, AEONRG in Downington, Pennsylvania as Vice Chair for Advocacy; Kevin Johnson, NexGen Interactive in Cleveland, Ohio as Secretary Joan Myers, Strategic Link Partners in Moncure, North Carolina as Vice Chair for Communications Sanjyot Dunung, Alma Global Knowledge Media in New York, N.Y. as Vice Chair for Membership; and Bob Treiber, Boston Engineering Corporation in Boston, Mass. as Immediate Past Chair “I’ve spent my career helping businesses think strategically and utilize data and technology, and I can’t wait to help NSBA embark on what I know is going to be a very pivotal year in 2024,” stated Wilson. “I look forward to ensuring that the needs of small business are top-of-mind for policymakers in D.C. and throughout the election and am proud to help lead an organization known for its pragmatism and nonpartisanship.” Please click here for more on NSBA’s Board of Trustees. 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. ###

Companies may now begin submitting their beneficial ownership information reports. The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) is now accepting beneficial ownership information reports, part of the Corporate Transparency Act (CTA), now in effect for newly formed companies. Existing companies will not have to comply until Jan. 1, 2025. RELATED | NSBA Sues Treasury, Yellen Over Certain and Unclear CTA Requirements While beneficial ownership information reporting is only required once - unless the filer needs to update or correct information – NSBA maintains that the CTA is unconstitutional. Furthermore, the guidance provided from FinCEN is vague, lacks details on who is actually required to report, and is unclear on what fully constitutes a "beneficial owner." Generally, under the current provisions of the CTA, reporting companies must provide four pieces of information about each beneficial owner: Name; Date of birth; Address; and The identifying number and issuer from either a non-expired U.S. driver’s license, a non-expired U.S. passport, or a non-expired identification document issued by a State (including a U.S. territory or possession), local government, or Indian tribe. If none of those documents exist, a non-expired foreign passport can be used. An image of the document must also be submitted. RELATED | CTA Survey Shows Impending Costs for Small Business in 2024 In Nov. 2023, NSBA filed a lawsuit over the lack of clarity in the CTA and the inevitable administrative costs this new practice will impart on small-business owners across the country. A ruling on the case is still pending. For more information on these new reporting requirements, please review FinCEN’s Small Entity Compliance Guide, or visit fincen.gov/boi.

Congress is working to create regulatory authority oversight for the NLRB. A resolution to overturn the National Labor Relations Board’s (NLRB’s) new joint-employer rule advanced through a House panel as businesses carry on a major lobbying campaign to block the regulation. The Committee on Education and the Workforce voted 25-20 on Tuesday to approve the resolution (H.J. Res. 98), which allows lawmakers to undo agency rulemaking in certain circumstances. The NLRB’s new joint-employer  regulation set to take effect in February adjusts regulations for employers for multiple companies to be jointly liable for labor law violations. The rule has faced fierce opposition on the Hill from Republicans and some Democrats. The resolution now heads to the House floor, where passage is likely. In the Senate, Sen. Joe Manchin (D-W.Va.) has ardently opposed the NLRB rule, and Sen. Kyrsten Sinema (I-Ariz.) has also indicated she may vote to block it, raising the prospects that the resolution will pass Congress. However, the resolution is vulnerable to a presidential veto and could be rejected by President Joe Biden. 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. Follow NSBA as we continue tracking this change from the NLRB on Capitol Hill and across Washington.

Members of Congress are looking for additional insight on the NLRB’s changes to the joint-employer definition. This week, Rep. Roger Williams (R-Texas), Chairman of the House Small Business Committee, and Ranking Member Nydia Velazquez (D-N.Y.) sent a letter to Chair of the National Labor Relations Board (NLRB) Lauren McFerran regarding a recent rule change to the Standard for Determining Joint Employer Status. RELATED | Our Latest on the NLRB Joint-Employer Cosigned by fellow Small Business Committee Members, Chair Williams detailed concerns to the NLRB around changes expanding the joint-employer definition, focused on how the change allows a joint employer finding based solely on indirect and unexercised control. The letter further contended the change removes clear standards for determination and limits how employers can predict risks and costs of contracts with providers, vendors, subcontractors, and franchisees. NSBA has long warned about the negative consequences of the joint employer rule changes and urges policymakers to craft policy that is clear in its requirements for employers and employees. We we look forward to learning more from the NLRB through this congressional correspondence. Read the full list of questions submitted to the NLRB for clarity on changes to the joint-employer rule from the Congressmen here. Click here to read NSBA’s comments on the rule.