WeVote
Log In

Bill

Bill

A 7991

Relates to authorizing small business tax-deferred savings accounts

2025 Regular Session Introduced by Nikki Lucas

Authorizes tax-deferred savings accounts for small businesses, enabling employers and workers to save with tax advantages and altering state tax administration needs.

REFERRED TO SMALL BUSINESS
0
WeVote Research Nonpartisan
Bill Summary · A 7991

Summary of Bill A 7991: Relates to authorizing small business tax-deferred savings accounts

Overview

  • Bill number: A 7991
  • Title: Relates to authorizing small business tax-deferred savings accounts
  • Status: Referred to Small Business (pending further action)
  • Introduced: April 16, 2025
  • Primary sponsor: Nikki Lucas
  • Legislative actions:
    • 2025-04-16: REFERRED TO SMALL BUSINESS
    • 2025-04-16: REFERRED TO SMALL BUSINESS (duplicate entry)

Purpose and intent

The bill’s stated purpose, as reflected in its title, is to authorize the creation or operation of tax-deferred savings accounts for small businesses. While the full text is not provided in the available materials, the aim appears to be expanding or enabling mechanisms for small-business savings and potential tax advantages associated with those accounts.

Key provisions (note on available text)

  • The exact provisions of A 7991 are not included in the provided materials. Specific details such as definitions, eligibility, types of accounts, contribution rules, tax treatment, administration, and withdrawal provisions are not yet disclosed.

What is likely to be addressed (potential areas a bill of this type often covers)

  • Eligibility: what constitutes a “small business” for purposes of the program.
  • Account types: whether accounts are state-sponsored, private-issuance, or hybrids; who administers them.
  • Tax treatment: how contributions and withdrawals are taxed; potential tax incentives for both employers and employees.
  • Contribution limits and eligibility requirements (who can participate, funding sources, annual limits).
  • Fiduciary and administrative responsibilities (recordkeeping, reporting, audits).
  • Interaction with other state tax provisions and any sunset or review provisions.
  • Penalties for misuse or noncompliance and enforcement mechanisms.

Important: These items are common in similar proposals but are not confirmed for A 7991 without the bill text.

Affected parties

  • Primary beneficiaries: small businesses and their employees, who would be participants in any introduced tax-deferred savings mechanism.
  • Employers: potential administrators or facilitators of accounts; possible administrative or compliance responsibilities.
  • State revenue/tax administration: may see changes in tax treatment, reporting requirements, and compliance workload.

Legislative history and related measures

  • Related bills (prior sessions): S 2412, S 22, S 5990
  • Companions: S 6539 (listed as companion in the materials)
  • These related measures suggest ongoing interest in small-business savings and tax-deferral concepts across sessions, with parallel or companion proposals in the Senate.

Timeline and next steps

  • After introduction and referral to the Small Business committee, the bill would typically undergo committee review, possible hearings, amendments, and votes before moving to the floor for consideration. Text and fiscal analyses would clarify precise provisions and potential impacts.
  • Readers should track the bill’s progress in the Small Business committee for updates, and review the official bill text when released for exact provisions.

If you’d like, I can incorporate any text you provide or compare A 7991 to the related bills listed (S 2412, S 22, S 5990, S 6539) to highlight similarities or differences.

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

Sign in to ask a question.