April 16, 2021

A group of Senate Democrats introduced legislation Tuesday, April 20th offering small businesses owned by women and
people of color greater access to capital through tax incentives.

The bill, known as Providing Real Opportunities for Growth to Rising Entrepreneurs for Sustained Success (PROGRESS)

Act, includes two new tax credits:
a First Employee Credit and an Investor Credit.
he First Employee Credit would provide a credit equal to 25% of W-2 wages reported that could be claimed annually, up
to $10,000 a year with a lifetime limit of $40,000.
This credit would be creditable against a business’ payroll tax liability.
Even those businesses that have not reported full-time W-2 wages in a previous year would be eligible.
To be an eligible,
a business would have to be majority owned by U.S. individuals who each earn $100,000 or less per year ($200,000 for

joint filers).

The Investor Credit would encourage third-party capital investment in small businesses.
The credit would be up to 50%
of a qualified debt, or equity investment up to 50% of qualified debt, or equity investment could be claimed up to $10,000

a year with a lifetime limit of $50,000.
Eligible businesses would need to have one full-time employee, and be majority
owned by US individuals who earn $100,000 or less per year ($200,000 for joint filers).

The bill has gained early support from small business groups, including the Main Street Alliance and The Small Business



100 Center Dr
Del Rio, TX 78840

Join the TxSEA mailing list

    Copyright by Texas Society of Enrolled Agents. All rights reserved.