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Tax Deductions for Small Business Emergency Savings Accounts

This act allows small businesses to deduct contributions made to special emergency savings accounts from their taxes. These accounts are designed to help businesses cover essential expenses like wages, rent, and utilities during federally declared disasters or public health emergencies. The goal is to enhance the financial resilience of small businesses against unforeseen events.
Key points
Small businesses (up to 500 employees) can establish special emergency savings accounts.
Contributions to these accounts will be tax-deductible, reducing the financial burden on businesses.
Funds from these accounts can be used for expenses related to federally declared disasters or public health emergencies (e.g., wages, rent, utilities, repair costs).
Withdrawals for non-emergency purposes will be taxed and subject to an additional penalty.
The deduction amount is limited to the lesser of 25% of wages paid or an amount that keeps the account balance below 150% of wages.
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Expired
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Additional Information
Print number: 118_HR_313
Sponsor: Rep. Cloud, Michael [R-TX-27]
Process start date: 2023-01-12
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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

Small Business Emergency Savings Accounts Act of 2023

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_313.

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 2023-01-12.

What are the main provisions?

Key points include:

  • Small businesses (up to 500 employees) can establish special emergency savings accounts.
  • Contributions to these accounts will be tax-deductible, reducing the financial burden on businesses.
  • Funds from these accounts can be used for expenses related to federally declared disasters or public health emergencies (e.g., wages, rent, utilities, repair costs).
  • Withdrawals for non-emergency purposes will be taxed and subject to an additional penalty.
  • The deduction amount is limited to the lesser of 25% of wages paid or an amount that keeps the account balance below 150% of wages.
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. Cloud, Michael [R-TX-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 2025-12-25.

CATEGORIES

Taxes Economy