BOSTON — U.S. health clubs will directly benefit from President Bush's $350 million tax relief plan that was signed into law on Wednesday, May 28, according to IHRSA. The bill includes income tax rate reductions, a significant cut in dividend and capital gains taxes and a quadrupling of the expensing limit for small business owners.
“President Bush's tax relief plan can significantly reduce a health club's state and federal income tax,” says John McCarthy, executive director of IHRSA. “This is a boon to health club operators and equipment manufacturers alike. IHRSA will continue to work with the National Federation of Business (NFIB) to extend this tax break through 2005.”
The income tax rate reductions and the cut in dividend and capital gains taxes are expected to assist many small business owners and designed to spur investment. The increase of the expensing limit for small businesses is key to health club operators, as any health club will now be able to expense up to $100,000 in new equipment in 2003, 2004 and 2005 instead of allowing it to depreciate over five years, IHRSA says.