Sponsors (2)
This bill provides modest, targeted financial and technical support to help small businesses plan and complete ownership succession—improving continuity for many firms—while adding new federal credits and administrative obligations, with limited monetary relief and a specific recapture risk for some sellers.
Small business owners and incoming successors: eligibility for two $250 tax credits (one for establishing a qualified succession plan and one for completing a certified succession) lowers net planning costs and creates a direct financial incentive to transfer ownership.
Small businesses — including disadvantaged-owned firms: access to a free succession-planning toolkit, training, and counseling improves owners' ability to prepare plans, increasing chances of continuity and business survival.
Local communities and small-business owners: authorizes SBA workshops and district-level counselors, expanding local, in-person support for succession planning and making assistance more accessible.
Small business owners selling most assets to non-small entities within three years: may face tax recapture that increases tax liability if a prior credit is reversed.
Small business owners: the $250 credit(s) are modest and likely will not fully offset typical legal, appraisal, and transactional costs of preparing and executing a succession, limiting the policy's practical financial relief.
Federal agencies and taxpayers: creating, certifying, enforcing, and reporting on the new credits and counseling programs adds administrative burden for SBA and Treasury and may require new agency resources to implement.
Based on analysis of 2 sections of legislative text.
Requires SBA to run a small business succession planning program with a public toolkit, counseling, training, and creates two $250 SBA‑certified succession tax credits with 3‑year recapture.
Official title: To require the Administrator of the Small Business Administration to establish a program to encourage small business concerns to make business succession plans, and for other purposes.
Introduced May 29, 2026 by Jason Crow · Last progress May 29, 2026
Creates an SBA-run program to help small businesses develop and carry out business succession plans, including a public toolkit, training and designated counselors in SBA district offices and partner organizations. Adds a new, nonrefundable business tax credit up to $250 for (1) establishing an SBA‑certified succession plan and (2) completing an SBA‑certified ownership succession, with a three‑year recapture rule if the business is quickly sold to non‑small entities. Requires the SBA to deliver a plan to Congress within 120 days describing how to increase the share of small businesses with succession plans and to target outreach to socially and economically disadvantaged owners; authorizes optional workshops and counseling supports to implement the toolkit.