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Bill

HR 9051

Small Business Succession Planning Act

119th Congress Introduced by Jason Crow and 1 co-sponsor

The bill creates an SBA program to help small businesses develop succession plans and offers a $250 tax credit for establishing and completing such plans.

Introduced in House
0
WeVote Research Nonpartisan
Bill Summary · HR 9051

Summary of Bill: Small Business Succession Planning Act (H.R. 9051, 119th Congress)

Purpose and Intent

  • Establish a federal program within the Small Business Administration (SBA) to encourage and assist small business concerns in developing and implementing formal business succession plans.
  • Provide a tax credit to eligible small businesses that establish and complete a succession plan, and to those that successfully execute a succession of responsibilities under such a plan.
  • Include reporting, timelines, and authorization of appropriations to support these goals.

Key Provisions

  1. SBA Program to Support Succession Planning

    • The SBA must create a program to help small businesses develop and implement business succession plans.
    • Develop a toolkit to assist in establishing succession plans, to be publicly accessible on the SBA website.
    • The SBA must train resource partners on using the toolkit and educating small businesses.
    • Each SBA district office and resource partner must designate staff responsible for counseling small businesses on using the toolkit.
    • The SBA may host workshops or events on succession planning.

  2. Plan and Outreach

    • Within 120 days of enactment, the SBA must submit a plan to increase the number of small businesses with succession plans.
    • The plan must include strategies to increase uptake among businesses owned and controlled by socially and economically disadvantaged individuals (as defined by the Small Business Act).

  3. Tax Credit for Completing a Succession Plan

    • Adds a new tax credit: Business Succession Plan Credit.
    • Amounts:
      • $250 for the first taxable year in which the SBA certifies a taxpayer has established a business succession plan and meets criteria.
      • $250 for the first taxable year in which the taxpayer certifies successful completion of a succession of responsibilities under a certified plan.
    • Eligibility criteria include certification by the SBA, the taxpayer being a small business, and the plan not transferring substantially all interests/assets to non-small-business entities.

  4. Recapture Provisions

    • If, within 3 years of establishing a plan, substantially all equity interests or assets are acquired by non-small-business entities, the credit for that year (or prior year) is recaptured as additional tax owed.
    • Similarly, if, within 3 years of completing a succession of responsibilities, substantial acquisition by non-small-business entities occurs, the credit is recaptured accordingly.

  5. Definitions and Clarifications

    • Defines key terms: “business succession plan,” “small business concern,” “resource partners,” and other terms used in the act.
    • Clarifies which entities count as resource partners (e.g., SBA offices, Small Business Development Centers, Women's Business Centers, SCORE chapters, Veteran Business Outreach Centers, etc.).

  6. Administrative and Oversight Details

    • Amends Subpart D of Part IV of Subchapter A of Chapter 1 of the Internal Revenue Code to add the new tax credit (Sec. 45BB) and make related conforming edits.
    • Requires a Treasury report within 90 days after enactment detailing steps to enforce the credit recapture provisions.
    • Authorization of appropriations: Funds are authorized to be appropriated to the SBA as necessary for fiscal years 2026 through 2031 to carry out the act.

Who Is Affected

  • Small Business Concerns: Eligible entities can participate in the SBA program and potentially receive the new tax credit (and must meet plan criteria to qualify).
  • Owners of Small Businesses: Particularly those who anticipate transition due to death, retirement, or sale; plans are designed to facilitate continued operations.
  • Disadvantaged Firms: The act emphasizes increasing plan adoption among small businesses owned/controlled by socially and economically disadvantaged individuals.
  • SBA and Resource Partners: Will implement, manage, and promote the toolkit, training, and counseling activities.
  • Taxpayers/Taxpayers’ Advisors: Must account for the new credit (Sec. 45BB) on quarterly/annual tax filings; potential recapture implications.

Procedural and Timeline Highlights

  • Introduction date: May 29, 2026.
  • Enrollment/Implementation window: Plan due 120 days after enactment.
  • Tax credit effective date: Applies to taxable years ending after the date of enactment.
  • Recapture window: 3-year window following establishment or completion of the plan/succession.
  • Funding: Authorization of appropriations through 2031 to support the program.
  • Reporting: Treasury to report on enforcement steps for recapture provisions within 90 days of enactment.

Notes for Readers

  • The bill emphasizes proactive planning to ensure business continuity across ownership transitions.
  • The tax credit is relatively modest ($250 for each of two trigger events) but paired with an SBA program and advisory resources.
  • Recapture provisions create a conditional effect to deter shifting control to non-small-business entities during the protected period.

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

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