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Small Business Support: Succession Planning and Tax Credits

This law aims to help small business owners prepare plans for transferring their business, for example, upon retirement. It introduces a support program and tools, and also offers a tax credit for businesses that create and implement such a plan. This is intended to ensure the continuity of small businesses and protect jobs.
Key points
The Small Business Administration (SBA) will create a program and tools to help small businesses develop succession plans.
Small businesses can receive a $250 tax credit for establishing a succession plan and another $250 for successfully completing a succession.
The tax credit may be reclaimed if the business is acquired by a large entity within 3 years of receiving the credit.
The SBA will provide training and counseling on succession planning for small businesses, including those owned by socially and economically disadvantaged individuals.
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Expired
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Additional Information
Print number: 117_HR_971
Sponsor: Rep. Bustos, Cheri [D-IL-17]
Process start date: 2021-02-11
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Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Small Business Succession Planning Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_971.

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 2021-02-11.

What are the main provisions?

Key points include:

  • The Small Business Administration (SBA) will create a program and tools to help small businesses develop succession plans.
  • Small businesses can receive a $250 tax credit for establishing a succession plan and another $250 for successfully completing a succession.
  • The tax credit may be reclaimed if the business is acquired by a large entity within 3 years of receiving the credit.
  • The SBA will provide training and counseling on succession planning for small businesses, including those owned by socially and economically disadvantaged individuals.
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. Bustos, Cheri [D-IL-17].

What is the latest detailed status?

The latest detailed status is: Introduced in House

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-28.

CATEGORIES

Economy Taxes