House passes tax cuts to help small business; to be merged with small business lending bill

House passes tax cut for small business investment

WASHINGTON — The House has passed a package tax breaks to encourage investment in small businesses as congressional Democrats try to revive their jobs agenda and boost the economic recovery.

The bill would exempt long-term investments in certain small businesses from capital gains taxes. It would also increase tax deductions for startup expenses by new small businesses.

House Democrats plan to merge the bill with legislation creating a $30 billion fund to encourage community banks to increase lending to small businesses.

House Democratic leaders hope to pass the lending bill as early as Wednesday, sending the entire package to the Senate.