S.Amdt. 4477

This amendment, submitted by Mr. Wyden, proposes to add a new title to bill S. 1383 called the Providing Real Opportunities for Growth to Rising Entrepreneurs for Sustained Success (PROGRESS) Act. Its purpose is to create two new tax credits to support small business investors and new employers.

Small Business Investor Tax Credit

This part of the amendment aims to add a credit for taxpayers who make a qualified investment (either buying stock/capital interests or providing a qualifying loan) in a qualifying business entity.

• The credit is generally 10 percent of the investment, with specific dollar limits and adjustments if loan interest rates exceed the bank prime rate.
• To qualify, the business entity must meet ownership requirements by qualified active investors, meet specific wage requirements (employing at least one full-time employee), and provide certification.
• This credit is intended for investments made in taxable years beginning after December 31, 2026.

First Employee Business Wage Credit

This part aims to provide a credit to qualifying business entities equal to 25 percent of qualified wages paid to employees.

• The credit has a maximum dollar limit and is subject to cost-of-living adjustments.
• It applies to the period starting with the first taxable year the entity employs at least one full-time employee and pays W-2 wages.
• Eligible businesses can choose to apply a portion of this credit against payroll taxes.
• This credit is also intended for taxable years beginning after December 31, 2026.