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Tax Credits for Start-up Investors and First Employee Wages.

This law introduces two new tax credits designed to boost the creation and growth of small businesses. Individuals who actively participate in a start-up and meet specific income limits can claim a credit for their investments. Additionally, new businesses can receive a credit covering 25% of the wages paid to their first employees, which can be applied directly against payroll taxes to encourage early hiring.
Key points
Investor Credit: Individuals actively involved in a qualifying start-up, meeting income requirements, can receive a tax credit up to 10% of their investment, capped annually at $10,000 (and $50,000 total per investment).
Hiring Incentive: New businesses are eligible for a credit of 25% of qualified first employee wages, up to $10,000 annually, which can be used to offset the employer's payroll taxes.
Eligibility Focus: The investor credit is specifically aimed at "qualified active investors"—those who materially participate in the business and have moderate income levels.
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Additional Information
Print number: 117_HR_2680
Sponsor: Rep. Chu, Judy [D-CA-27]
Process start date: 2021-04-20
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Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Providing Real Opportunities for Growth to Rising Entrepreneurs for Sustained Success (PROGRESS) Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_2680.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2021-04-20.

What are the main provisions?

Key points include:

  • Investor Credit: Individuals actively involved in a qualifying start-up, meeting income requirements, can receive a tax credit up to 10% of their investment, capped annually at $10,000 (and $50,000 total per investment).
  • Hiring Incentive: New businesses are eligible for a credit of 25% of qualified first employee wages, up to $10,000 annually, which can be used to offset the employer's payroll taxes.
  • Eligibility Focus: The investor credit is specifically aimed at "qualified active investors"—those who materially participate in the business and have moderate income levels.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Chu, Judy [D-CA-27].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2026-01-02.

CATEGORIES

Taxes Economy