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PROGRESS Act: Tax Credits for Investors and First Employees

This Act amends the Internal Revenue Code of 1986 to provide tax credits for qualified active investors in qualifying business entities and a credit for wages paid by such entities to employees. The legislation defines dollar limits, investor income requirements, and business eligibility criteria.
Key points
Investors in qualifying business entities may receive a tax credit equal to the lesser of 10% of the qualified investment or a formula-based amount, subject to an annual limit of $10,000 (indexed for inflation).
Qualifying business entities may claim a tax credit equal to 25% of qualified wages paid to employees, subject to an annual limit of $10,000 (indexed for inflation).
The investor credit is available to "qualified active investors," defined as U.S. citizens or residents who materially participate in the business and meet specific income requirements.
To qualify, businesses must meet specific requirements regarding ownership by qualified active investors and the payment of W-2 wages to full-time employees.
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Expired
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Additional Information
Print number: 117_S_1256
Sponsor: Sen. Wyden, Ron [D-OR]
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_S_1256.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2021-04-20.

What are the main provisions?

Key points include:

  • Investors in qualifying business entities may receive a tax credit equal to the lesser of 10% of the qualified investment or a formula-based amount, subject to an annual limit of $10,000 (indexed for inflation).
  • Qualifying business entities may claim a tax credit equal to 25% of qualified wages paid to employees, subject to an annual limit of $10,000 (indexed for inflation).
  • The investor credit is available to "qualified active investors," defined as U.S. citizens or residents who materially participate in the business and meet specific income requirements.
  • To qualify, businesses must meet specific requirements regarding ownership by qualified active investors and the payment of W-2 wages to full-time employees.
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 Sen. Wyden, Ron [D-OR].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

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