Rep. Terri Sewell Re-Introduces The Small Business Start-Up Savings Account Act of 2016
Washington, D.C. - Today, Rep. Sewell re-introduced H.R. 5783, The Small Business Start–Up Savings Account Act of 2016. The bill would allow entrepreneurs to contribute up to $10,000 per year into a tax free account, which could be used for qualified start-up expenses. Contributions to the account could accumulate up to $150,000 and be taken out tax-free.
“Small businesses are the strongest economic engine in this country and the backbone of our economy. It is critically important that as our economy continues to recover, we encourage and promote entrepreneurship and the creation of jobs for millions of Americans. Unfortunately, starting a small business is often met with challenges that may seem insurmountable,” said Rep. Sewell.
“On average, an entrepreneur spends roughly $80,000 in first year start-up costs, and these recovering economic times have made it even more difficult for prospective business owners to access vital start-up capital. That is why I introduced legislation to help new small business owners save money tax-free.
“This bill expands much needed lending to millions of small businesses and offers tax incentives to help small businesses grow, hire, and fuel our economy. Once an individual decides to open a small business, funds in the account can be used for qualified expenses such as equipment, facilities, marketing, legal fees, and other capital and operating expenses. This is a common sense approach to encourage economic growth and job creation. Congress should spend more time and energy on legislation like this that can have a positive impact on working and middle class Americans,” said Rep. Sewell.
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