Small Business Tax Relief Act

Small Business Tax Relief Act - Allows an investment tax credit under the Internal Revenue Code to small businesses for depreciable property on which construction begins after December 31, 1974, or which is acquired after such time, equal to 10 percent of the qualified investment (the applicable percentage of the basis of each new such property and cost of each used such property placed in service by the taxpayer during the taxable year) up to $20,000 and 7 percent of such investment in excess of $20,000.

Increases the additional first-year depreciation allowance under the Internal Revenue Code for a small business from 20 to 25 percent. Increases the cost allowance of such property on which such deduction is based from $10,000 to $15,000.

Prescribes a formula for computing the last-in-first-out (LIFO) inventory adjustment for small businesses whose closing inventory is less than $200,000 and who do not use the LIFO inventory methods described in the provisions of the Internal Revenue Code.

Allows small businesses a carryover for 10 years of a net operating loss.