|Posted:||May 1, 2019 01:24 PM|
|From:||Senator John P. Blake and Sen. Vincent J. Hughes|
|To:||All Senate members|
|Subject:||Small Business tax-deferred savings accounts|
|In the near future, we plan to reintroduce Senate Bill 1196 from last session to create Small Business tax-deferred savings accounts.
Every year since 1963, the President of the United States has issued a proclamation announcing National Small Business Week, which recognizes the critical contributions of America’s entrepreneurs and small business owners. The week of May 5 through May 11 is “Small Business Week” in Pennsylvania. Small businesses are the economic backbones of our communities. According to Pennsylvania Small Business Development Centers, there are nearly one million small businesses in Pennsylvania. Small businesses across the Commonwealth account for nearly 50% of the private sector workforce.
Inspired by legislation introduced in the New York State Assembly, this proposal would allow any small business in Pennsylvania to deposit profits into a small business tax-deferred savings account, subject to annual limits. The monies in Small Business tax-deferred savings accounts will be permitted to be withdrawn tax free when they are expended for qualifying small business expenditures that will create full time jobs.
This proposal will provide an innovative tool which will improve the competitiveness and productivity of small businesses leading to the creation of full-time jobs in Pennsylvania.
Please join us in sponsoring this legislation.
Introduced as SB672