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Bill

A 4618

Establishes business franchise and personal income tax credits for capital investments made in certain small businesses

2025 Regular Session Introduced by Joe Sempolinski

Bill A 4618 offers tax credits to encourage investments in small businesses, boosting capital access, job creation, and economic growth in the state.

REFERRED TO WAYS AND MEANS
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Bill Summary · A 4618

Summary of Bill A 4618

Bill Number: A 4618
Title: Establishes business franchise and personal income tax credits for capital investments made in certain small businesses
Status: Referred to Ways and Means
Introduced: February 04, 2025
Classification: Bill

Purpose and Intent

Bill A 4618 aims to stimulate economic growth by providing financial incentives for capital investments in small businesses. The primary goal is to encourage both individual and corporate investors to allocate funds towards qualifying small businesses, thereby fostering job creation and economic development within the state.

Key Provisions

The bill proposes the following significant provisions:

  • Tax Credits:

    • Establishes a business franchise tax credit for companies that invest in qualifying small businesses.
    • Introduces a personal income tax credit for individuals who make capital investments in these businesses.

  • Eligibility Criteria:

    • Defines "qualifying small businesses" based on specific revenue thresholds and employee counts.
    • Outlines the types of capital investments that qualify for the tax credits, which may include equipment purchases, facility upgrades, and other tangible assets.

  • Credit Amounts:

    • Specifies the percentage of the investment that can be claimed as a tax credit, although exact percentages are not detailed in the provided information.

  • Application Process:

    • Establishes a streamlined application process for businesses and individuals seeking to claim these credits.

Impact

Who Would Be Affected?

  • Small Businesses: The bill directly benefits small businesses that meet the eligibility criteria, providing them with increased access to capital.
  • Investors: Both individual and corporate investors will have financial incentives to invest in small businesses, potentially leading to increased investment activity in the state.
  • State Economy: The anticipated increase in capital investments is expected to contribute to job creation and overall economic growth.

Procedural Aspects

  • Legislative Process: As of February 4, 2025, the bill has been referred to the Ways and Means Committee for further consideration. The timeline for additional hearings or votes has not been specified.

Related Bills

Bill A 4618 is connected to several prior-session bills, which may provide context or similar provisions. These include:

  • A 5443
  • A 6022
  • A 3776
  • A 6522
  • A 2710
  • A 4993
  • A 5790
  • A 8482
  • A 2390

These related bills may share similar goals or frameworks regarding tax incentives for small businesses.

This summary provides an overview of Bill A 4618, highlighting its purpose, key provisions, potential impacts, and procedural status. For further details, readers may wish to follow the bill's progress through the legislative process.

Compiled from official sources — confirm details with the bill’s official record.

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