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

senate

house

president

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 capital interest in a qualifying business entity or a qualifying loan made to the entity.
Sets requirements for qualifying business entities, including ownership by qualified active investors and employment of at least one full-time employee.
Establishes certification requirements for entities to qualify for the credits, including providing necessary documentation to the Secretary of the Treasury.
Allows for cost-of-living adjustments to the credit limits starting in 2025.
Provides rules for pass-through entities regarding the application of credits and limitations.
Credits can be applied against alternative minimum tax and are part of the general business credit.
Effective for taxable years beginning after December 31, 2024.

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 capital interest in a qualifying business entity or a qualifying loan made to the entity.
Sets requirements for qualifying business entities, including ownership by qualified active investors and employment of at least one full-time employee.
Establishes certification requirements for entities to qualify for the credits, including providing necessary documentation to the Secretary of the Treasury.
Allows for cost-of-living adjustments to the credit limits starting in 2025.
Provides rules for pass-through entities regarding the application of credits and limitations.
Credits can be applied against alternative minimum tax and are part of the general business credit.
Effective for taxable years beginning after December 31, 2024.