Introduced House Bill (H)

Authored by

DIGEST

Tax credit for new small businesses. Provides that a taxpayer that is a qualified small business startup is entitled to a graduated tax credit against adjusted gross income tax liability. Defines a "qualified small business startup" as a business that: (1) is not part of an affiliated group of corporations or under common control; (2) has fewer than 10 full-time employees; (3) has sales of not more than $1,000,000; (4) is not publicly traded; and (5) during the preceding five years, was in the first year of employer compliance concerning worker's compensation requirements. The amount of the graduated tax credit Tax credit for new small businesses. Provides that a taxpayer that is a qualified small business startup is entitled to a graduated tax credit against adjusted gross income tax liability. Defines a "qualified small business startup" as a business that: (1) is not part of an affiliated group of corporations or under common control; (2) has fewer than 10 full-time employees; (3) has sales of not more than $1,000,000; (4) is not publicly traded; and (5) during the preceding five years, was in the first year of employer compliance concerning worker's compensation requirements. The amount of the graduated tax credit is: (1) 100% of adjusted gross income tax liability for the first taxable year of the qualified small business startup; (2) 80% of adjusted gross income tax liability for the second consecutive taxable year of the qualified small business startup; (3) 60% of adjusted gross income tax liability for the third consecutive taxable year of the qualified small business startup; (4) 40% of adjusted gross income tax liability for the fourth consecutive taxable year of the qualified small business startup; and (5) 20% of adjusted gross income tax liability for the fifth consecutive taxable year of the qualified small business startup. ... View more