Senate Legislation Would Create Tax Incentives for Small Businesses that Add Investment, Employees

Wednesday, April 21, 2021 - 2:15pm

Four U.S. Senators today introduced legislation to create tax incentives for small businesses that add employees or investment. Sen. Ron Wyden, D-Oregon, Sen. Ben Cardin, D-Maryland, Sen. Maggie Hassan, D-New Hampshire, and Sen. Catherine Cortez Masto, D-Nevada, introduced the Providing Real Opportunities for Growth to Rising Entrepreneurs for Sustained Success (PROGRESS) Act, which would create two new tax incentives, a first employee credit and an investor credit. The first employee credit would be worth 25% of W-2 wages that can be claimed against certain businesses’ payroll tax liability for up to $10,000 per year for its first employee, with a lifetime cap of $40,000. The investor credit would be for up to 50% of qualified debt or equity investment up to $10,000 per year with a lifetime cap of $50,000.

This and other business incentives will be discussed at the Novogradac 2021 Spring New Markets Tax Credit Virtual Conference, June 10-11.