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A 2460

Relates to small business savings accounts

2025 Regular Session Introduced by Joe Angelino and 15 co-sponsors

Bill Summary: A 2460 - Small Business Savings Accounts OverviewThis bill, titled "Relates to small business savings accounts", aims to establish a new tax-advantaged savings progra

REFERRED TO WAYS AND MEANS
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Bill Summary · A 2460

Bill Summary: A 2460 - Small Business Savings Accounts

Overview

This bill, titled "Relates to small business savings accounts", aims to establish a new tax-advantaged savings program for small businesses in the state. The bill was introduced on January 17, 2025 and has been referred to the Ways and Means committee for consideration.

Key Provisions

The main components of the bill include:

  1. Creation of Small Business Savings Accounts: The bill would allow small businesses to open special savings accounts that provide tax benefits for contributions and withdrawals.

  2. Contribution Limits: Businesses would be able to contribute up to $10,000 per year to their Small Business Savings Account, with a lifetime contribution limit of $100,000.

  3. Tax Deductions: Contributions to the savings account would be tax-deductible for the small business, helping to incentivize saving.

  4. Tax-Free Withdrawals: Withdrawals from the savings account, when used for approved business expenses, would be exempt from state and local taxes.

  5. Eligibility: To qualify, a business must have fewer than 50 full-time employees and meet certain revenue thresholds (e.g. less than $5 million in annual gross receipts).

  6. Program Administration: The state's Department of Revenue would be responsible for establishing the savings account program and overseeing its implementation.

Impact and Considerations

This bill is intended to help support the financial resilience and growth of small businesses in the state. By providing tax incentives for business savings, it aims to encourage small companies to set aside funds for future investments, emergencies, or other needs.

Some potential impacts and considerations include:

  • Increased small business savings and investment, potentially boosting economic activity
  • Revenue implications for the state budget due to the tax deductions and exemptions
  • Potential complexity in administering the savings account program and ensuring proper usage
  • Questions around equity and whether the benefits will reach the smallest or most vulnerable small businesses

Overall, this bill represents an effort to provide targeted financial assistance to the small business community through a new tax-advantaged savings program.

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

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