Small Business Tax Act of 1981

[AI summary unavailable — showing source text] Small Business Tax Act of 1981 - Amends the Internal Revenue Code to permit a taxpayer to elect to expense (i.e., currently deduct) up $25,000 of the costs of new or used tangible personal property used in the taxpayer's trade or business during a taxable year in lieu of current provisions permitting additional first year depreciation. Reduces corporate income tax rates. Reduces the amount of tax imposed on the taxable income of a small business corporation by an amount equal to the tax which would be imposed if such corporation's taxable income for the taxable year equalled the lesser of: (1) the amount of dividends distributed during the taxable year; or (2) $100,000. Excludes certain businesses from eligibility for such treatment. Increases from $100,000 to $200,000 the allowable cost of used property eligible for the investment tax credit. Increases the investment tax credit percentage for rehabilitation expenditures in connection with certain buildings and certified historic structures. Qualifies certified historic structures which are used for residential purposes for the investment tax credit. Revises the definition of "qualified rehabilitated building" to increase from 20 y…