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

Legislation Details

Amends the Internal Revenue Code of 1986 to introduce a tax credit for investors in start-up businesses.
Establishes a Small Business Investor Tax Credit, allowing a credit equal to the lesser of 10% of the qualified investment or 50% of the investment reduced by previous credits, with a maximum limit of $10,000.
Introduces a First Employee Business Wage Credit, providing a credit of 25% of qualified wages paid to the first employee, with a maximum limit of $10,000.
Defines “qualified investment” as the acquisition of stock or a qualifying loan made to a qualifying business entity.
Sets requirements for qualifying business entities, including ownership by qualified active investors and employment of at least one full-time employee.
Includes provisions for cost-of-living adjustments to the credit limits after 2025.
Allows for the election to apply the wage credit against payroll taxes.
Establishes certification requirements for entities to qualify for the credits.
Specifies that the credits will not apply to wages paid to qualified active investors or 5-percent owner-employees.
Effective for taxable years beginning after December 31, 2024.