Heinrich Cosponsors Legislation to Provide Tax Relief to Small Business Entrepreneurs

WASHINGTON – U.S. Senator Martin Heinrich (D-N,M.), Chairman of the U.S. Joint Economic Committee (JEC), cosponsored the Tax Relief for New Businesses Act, legislation to provide more tax relief to entrepreneurs looking to start a small business, and reduce barriers for startups.

"Small locally-owned businesses are the beating hearts of our communities and the backbone of our economy,” said Heinrich. “I’m proud to cosponsor legislation that will allow our small-business entrepreneurs to unlock their economic potential in New Mexico. I remain committed to supporting our state’s entrepreneurs and small businesses, lowering costs, growing our economy, and connecting New Mexicans to high-quality careers they can build their families around.” 

The Tax Relief for New Businesses Act will increase the startup tax deduction from $5,000 to $50,000 and allow businesses to write off more expenses to compensate for the increasing cost of starting a business. Currently, small business owners can only deduct up to $5,000 in startup costs in the first year, yet a recent survey found that they spend an average of $40,000 to get their businesses off the ground.

The legislation is led by U.S. Senators Jacky Rosen (D-Nev.), Jeanne Shaheen (D-N.H.), and Tammy Baldwin (D-Wis.). Alongside Heinrich, the bill is cosponsored by U.S. Senators Ron Wyden (D-Ore.), Richard Blumenthal (D-Conn.), Amy Klobuchar (D-Minn.), Chris Coons (D-Del.), and Raphael Warnock (D-Ga.).

The Tax Relief for New Businesses Act is endorsed by the Main Street Alliance and the Center for American Entrepreneurship.

The text of the bill is here.

Heinrich is a steadfast supporter of small business entrepreneurs in New Mexico.

Last month, Heinrich, a member of the Senate Appropriations Committee, delivered a keynote address at the New Mexico Veterans Business Summit highlighting how investments in veteran-owned businesses have grown New Mexico’s economy and created jobs New Mexicans can build their families around. Heinrich proudly secured funds through his role on the Appropriations Committee for the New Mexico Veterans Business Advocates Expo.

Heinrich also led the unveiling of a new, larger office space for the New Mexico Minority Business Development Center in Albuquerque to expand support for local businesses across the state as they create the types of careers New Mexicans can build their families around. Heinrich wrote the legislative provision that established and funded the New Mexico Business Center in 2020, securing more than $2.5 million in federal resources through the U.S. Department of Commerce’s Minority Business Development Agency for its staffing and programming.

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