A new tax incentive has been initiated by the President Barack Obama under the law of the Small Business Jobs Act. The tax incentive is hoped to create at least $30 billion in loans and $12 billion in tax incentives. Currently this is the new method in which the US government is tackling the issues of the financial crisis from last year. It is hoped to regain financial growth but also to build paths for future employment.
The key elements involved in the Small Business Jobs Act which has been changed or added include the elimination of the tax on capital gains from new small business investments by 2010 where tax will be held for a minimum of five years accordingly.