Congresswoman Michelle Lujan Grisham (NM-01) has introduced the Helping Our Middle Class Entrepreneurs (HOME) Act (H.R. 4052), legislation to support small businesses and encourage entrepreneurship.
Specifically, the bill would simplify the income tax filing process for small business owners who operate primarily out of their homes by creating a permanent $1,500 standard home office deduction. According to the U.S. Small Business Administration, home-based enterprises make up 52 percent of all small businesses. Currently, these business owners must undergo the complicated and time-consuming process of calculating expenses, depreciation and carryovers on their homes. As a result, less than half of America’s home-based businesses take a home office deduction.
“As a small business owner myself, I understand the unique challenges facing the individuals and companies who make up the backbone of our economy,” Representative Lujan Grisham said. “Our tax code should support small businesses and entrepreneurs, not penalize them. That’s why I’m proud to introduce the HOME Act in the House of Representatives and that’s why I’ll continue working to make it easier for small businesses to succeed, grow and create New Mexico jobs.”
In 2013, the Internal Revenue Service (IRS) enacted a temporary standard home office deduction, which gives home-based business owners the option to claim a standard $1,500 deduction when filing their income taxes or choose to itemize their deductions if they find it more advantageous to do so. The HOME Act would make this option permanent.
Last year, U.S. Senators Tom Udall (D-NM) and John Boozman (R-AK) introduced the HOME Act in the United States Senate. The legislation Rep. Lujan Grisham has introduced will serve as the House companion legislation to their bill.