Providing Real Opportunities for Growth to Rising Entrepreneurs for Sustained Success (PROGRESS) Act

Wyden, Ron

Providing Real Opportunities for Growth to Rising Entrepreneurs for Sustained Success (PROGRESS) ActThis bill provides a new small business investor tax credit for investments made into a small business (typically a start-up), subject to single year and lifetime limits. The bill also provides a first employee business wage tax credit for wages paid or incurred by a small business, subject to single year and lifetime limits.Under the bill, an investor may claim as part of the general business tax credit up to 50% of the amount of a loan or purchase of stock in a small business, limited to $10,000 in a single year and $50,000 in total.&nbsp;The bill also allows a small business owner to claim as part of the general business tax credit up to 25% of employee wages, limited to $10,000 in a single year and $40,000 in total. The employee wage business tax credit may be claimed against the business’s income or, if elected, against the business’s payroll taxes.For purposes of both business tax credits, a small business is a business that has at least one full-time employee (or the equivalent) and is owned by a resident or citizen of the United States who has an average taxable income for the three prior tax years of $100,000 or less (or $200,000 if filing a joint return or as head of household).