Despite its name, the new “Small Business and Work Opportunity Tax Act of 2007” is more than a just a package of tax breaks for small businesses. It also includes several revenue-raisers that could have a significant impact on your personal tax return. Thus, the new law contains both “winning” and “losing” propositions for taxpayers.

Here are some of the favorable tax provisions in the new law:

Section 179 rules: Effective for the 2007 tax year, the new law increases the maximum amount that may be “expensed” (i.e., currently deducted) under Section 179 to $125,000. (It was scheduled to be $112,000 for 2007.) The new law also extends inflation indexing for the Section 179 limit and allows current write-offs for most off-the-shelf software through 2010. Finally, the phaseout threshold for the Section 179 deduction is generally increased from $450,000 to $500,000 for 2007 with indexing through 2010.

S corporations: The new law contains several provisions that benefit S corporations and their owners, including tax breaks for qualified subchapter S subsidiaries (Q-Subs) and electing S business trusts (ESBTs) for tax years beginning after 2006. Significantly, gains from certain security sales will no longer be treated as passive investment income effective for tax years beginning after May 25, 2007.

Work Opportunity Tax Credit: The new law extends the Work Opportunity Tax Credit (WOTC), which is available for hiring workers from certain disadvantaged groups, through August 31, 2011. It also expands the list of workers eligible for the WOTC, including certain disabled veterans and an expansion of the category for “high-risk youths.”

Family business simplification: The tax filing requirements are eased for certain husband-and-wife teams operating an unincorporated business. This paperwork-reducing provision applies to tax years beginning after 2006.

Employer tip credit: An employer can receive a tax credit for the portion of FICA (Federal Insurance Contributions Act) tax paid on tips in excess of the minimum wage. Despite the increase in the minimum wage (phased in over the next two years), the credit will still be based on the previous minimum wage of $5.15 per hour.

On the downside, the new law also includes the following provisions:

Kiddie tax: The kiddie tax applies to the unearned income above an annual threshold ($1,700 for 2007) that is received by certain children. The excess is taxed at the parents’ top tax rate. In 2006, the age threshold was raised from age 14 to age 18. Now it’s been raised again for 2008 to age 19; age 24 for full-time students. This higher limit applies if the child’s earned income does not exceed half of his or her annual support.

Suspended interest: The IRS now has 36 months before it must stop charging interest and filing related penalties if it fails to notify you about a tax deficiency. The previous limit was 18 months.

Due process hearings: The new law eliminates the requirement that the IRS must hold a collection due process hearing before issuing a levy on delinquent employment taxes. However, post-levy hearings are still an option.

Bad checks: Previously, the minimum fee for bouncing a check to the IRS was $15 for checks totaling less than $750. That fee has been raised to $25 for checks totaling less than $1,250.

Of course, this is just an overview of the key new law changes. Consult with a professional tax adviser for your situation.