The Small Business Job Protection Act of 1996 (Pub.L.

Public law

Public law is a theory of law governing the relationship between individuals and the state. Under this theory, constitutional law, administrative law and criminal law are sub-divisions of public law...

 104-188) is a United States federal law. Rep. Bill Archer

William Reynolds Archer, Jr.

William Reynolds “Bill” Archer, Jr. is a former American lawyer and politician. Archer served two terms, from 1967 to 1971, in the Texas House of Representatives — changing from the Democratic to the Republican party in 1969 — and later represented Texas in the United States House as a Republican...

 sponsored the bill and it was signed into law on August 20, 1996 by President Bill Clinton

Bill Clinton

William Jefferson "Bill" Clinton is an American politician who served as the 42nd President of the United States from 1993 to 2001. Inaugurated at age 46, he was the third-youngest president. He took office at the end of the Cold War, and was the first president of the baby boomer generation...

.

The stated intent of the bill is:

"To provide tax relief for small businesses, to protect jobs, to create opportunities,to increase the take home pay of workers, to amend the Portal-to-Portal Act of 1947 relating to the payment of wages to employees who use employer owned vehicles, and to amend the Fair Labor Standards Act of 1938 to increase the minimum wage rate and to prevent job loss by providing flexibility to employers in complying with minimum wage and overtime requirements under that Act."

401(k)

The Act created a simplified 401(k)

401(k)

A 401 is a type of retirement savings account in the United States, which takes its name from subsection of the Internal Revenue Code . A contributor can begin to withdraw funds after reaching the age of 59 1/2 years...

 retirement plan to make it easier for small businesses to offer pension plans to their employees.

Adoption

A nonrefundable tax credit

Tax credit

A tax credit is a sum deducted from the total amount a taxpayer owes to the state. A tax credit may be granted for various types of taxes, such as an income tax, property tax, or VAT. It may be granted in recognition of taxes already paid, as a subsidy, or to encourage investment or other behaviors...

 of up to $5,000 per child for adoption expenses and $6,000 for children with special needs was established. The Act bars placement agencies that receive Federal funds from denying or delaying adoptions based on race, color,
or national origin.

Capital expense

The maximum amount claimed for capital expenses allowed by small businesses was increased by $7,000. The full amount was phased in over time.

Education tax incentive

Small businesses were allowed to exclude as much as $5,250 from an employee's taxable income for educational assistance provided by the employer. This incentive was through May 1997.

Minimum wage

The Act increased minimum wage

Minimum wage

A minimum wage is the lowest hourly, daily or monthly remuneration that employers may legally pay to workers. Equivalently, it is the lowest wage at which workers may sell their labour. Although minimum wage laws are in effect in a great many jurisdictions, there are differences of opinion about...

 in two steps, from $4.25 per hour to $4.75 effective October 1, 1996 and then to $5.15 on September 1, 1997.

Research tax credit

The Research tax credit had expired on July 1, 1995. This Act extended the credit through May 1997 but did not allow it to be retroactive.

Work opportunity tax credit

The Targeted Jobs Tax Credit was replaced with the Work opportunity tax credit.