The legislation would create a two-year tax credit on fuel purchases. The bill also increases the IRS Standard Mileage Rate tax deduction on fuel from the current 44.5 cents per mile to 60 cents for small business owners and independent contractors who use their own vehicles for work. In addition to changing the statutory formula to expand contracting opportunities for small businesses by including federal overseas contracts; the bill also shortens the tax depreciation period on improvements to restaurants and small retailers from 39 to 15 years.
"In light of rising heating and oil prices, HR 5058 is crucial to the survival of small businesses everywhere. Because we encourage competition and depend on small business for much of our revenue, we should support legislation that attempts to alleviate some of the burden currently placed on small businesses. Unfortunately, because there is little we can do to eradicate all of the current economic and social instability felt across our Nation, we should encourage passage of legislation that aims to provide businesses with the help they need to ensure their survival during the current economic instability," said Congresswoman Johnson.