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Tax Relief for Small Businesses: Lower Loan Costs

This act aims to ease financial burdens for small businesses, including farms, by exempting banks from taxes on interest from certain loans. This allows banks to offer lower interest rates, making it easier for small businesses to access credit and support their growth. These changes could lead to greater financial stability and job creation in local communities.
Key points
Banks will not pay tax on interest from loans up to $5 million granted to small businesses.
This applies to loans secured by agricultural land or incurred in the ordinary course of business.
The tax exemption is intended to encourage banks to offer cheaper credit to small businesses.
The provisions are valid until the end of 2027, with a possibility of extension after impact assessment.
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Expired
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Additional Information
Print number: 118_HR_3060
Sponsor: Rep. Kim, Andy [D-NJ-3]
Process start date: 2023-05-02
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

ABC Act of 2023

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_3060.

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 2023-05-02.

What are the main provisions?

Key points include:

  • Banks will not pay tax on interest from loans up to $5 million granted to small businesses.
  • This applies to loans secured by agricultural land or incurred in the ordinary course of business.
  • The tax exemption is intended to encourage banks to offer cheaper credit to small businesses.
  • The provisions are valid until the end of 2027, with a possibility of extension after impact assessment.
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. Kim, Andy [D-NJ-3].

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 2025-12-25.

CATEGORIES

Taxes Economy Agriculture