Amy LaBelle: New Hampshire Small Businesses Need Tax Certainty to Thrive

Amy LaBelle’s OP-ED in THe UNION LEADER: NEW HAMPSHIRE SMALL BUSINESSES NEED TAX CERTAINTY TO THRIVE

POSTED: OCTOBER 14, 2024

SOURCE: UNION LEADER | By: AMY LABELLE

By: Amy LaBelle

Twelve years ago, with $5,000 and a dream, my husband and I embarked on a journey to launch LaBelle Winery. There were humble beginnings, but our passion and hard work bootstrapped us into the 20,000-square-foot state-of-the-art winery that we run today. As anyone in the hospitality industry will tell you, running a small business is never easy, but we’ve been fortunate to endure weather, COVID and other economic downturns.

Today, inflation is hurting us. With the cost of everything from food to labor running higher, I have had no choice but to raise prices, but there’s only so much cost you can build into our services. The impact is predictable, I am seeing the same amount of customer traffic, but they are spending about 20% less across the board than they were just a few years ago. We run on very slim margins, so any increase in cost requires us to pivot on a dime. But it’s very difficult to make changes to our business model when we don’t have all the cards on the table, especially when it comes to our tax burden.

This is where Congress comes into play. For months, lawmakers have been sitting on the fate of several tax provisions that are critical to businesses across America. The Tax Relief for American Families and Workers Act of 2024 is essential to ensuring small businesses can continue to contribute to the local economy and provide jobs for our communities.

For businesses like mine, business tax deductions can make the difference between reinvesting in growth or treading water. One key provision in this legislation is the restoration of business interest deductibility. This change is particularly vital for any businesses, including wineries, that rely on debt financing to grow. Whether it’s purchasing new equipment, expanding the vineyard, or simply maintaining cash flow to cover payroll and operating expenses, being able to deduct interest makes a significant difference to our bottom line.

Without the ability to fully deduct interest expenses, the tax burden on businesses like mine could rise by as much as 30%. For a small business, this can be devastating, especially on top of existing financial pressures — like inflation, rising interest rates, and increased costs of materials.

Another essential part of this legislation is the provision allowing for 100% bonus depreciation on equipment purchases. This provision allows businesses to immediately deduct the cost of new capital investments — things like new bottling equipment, climate control systems, or even transportation vehicles used for distribution. In a capital-intensive industry like winemaking, this kind of upfront tax support is a game-changer.

Bonus depreciation began to phase out in 2022, and, if it continues as planned, will reach zero by 2027. If that happens, wineries and other small businesses will face much larger financial burdens when making necessary investments. That upfront deduction helps us manage cash flow. Without it, businesses will either have to carry more debt or delay much-needed improvements. These are not just hypothetical scenarios — they are very real concerns for small business owners across New Hampshire and beyond.

The benefits of these tax deductions extend beyond the immediate financial relief they provide. By easing the cost of doing business, they allow companies like mine to plan for the future. When I know that I can deduct interest expenses or fully write off new equipment purchases, I can expand operations or take on new projects. This, in turn, leads to more job creation and a stronger local economy. Small businesses are the backbone of our state, and tax policies that support them have ripple effects that benefit everyone.

With certainty comes confidence. For LaBelle Winery, the ability to deduct interest expenses and immediately write off equipment purchases gives us the financial breathing room we need to invest, grow, and continue contributing to the local economy. These deductions are not loopholes or special favors; they are a recognition of the very real costs involved in running a business and the contributions small businesses make to the economy. I urge our lawmakers in New Hampshire to support our small businesses by passing this important legislation.

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About LaBelle Winery:

LaBelle Winery has provided guests with award-winning wines since its founding in 2005. Since 2012, when its flagship facility opened in Amherst, the winery has offered outstanding cuisine, entertainment and venues for private events and weddings. LaBelle’s Amherst location is home to the winery’s production facility, The Bistro restaurant, a tasting room and wine and gift shop.

LaBelle’s Derry location opened in 2021. The Derry property is home to Americus restaurant, golf and mini-golf courses, an event center and a market offering prepared food and beverages. A tasting room and a sparkling wine production facility opened in Derry in May 2022. 

Along with award-winning wines, LaBelle has created a gourmet culinary product line called The Winemaker’s Kitchen. Products are currently available at both of the winery’s locations, and by 2024 will be available nationwide.

LaBelle Winery Derry is located at 14 Route 111, Derry, New Hampshire.
LaBelle Winery Amherst is located at 345 Route 101 in Amherst, New Hampshire.

Visit LaBelleWinery.com for directions and hours of operation.