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