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Tax Credits for Start-up Investors and First Employee Wages

This Act introduces new tax credits aimed at supporting start-ups and small businesses. Citizens and residents investing in qualifying new enterprises can receive a tax credit. Additionally, these businesses will receive a credit for wages paid to their first employees.
Key points
Investor Tax Credit: Individuals investing in qualifying start-ups (via stock acquisition or loans) can claim a credit of 10% of the investment amount, capped at $10,000 annually (with a total limit of $50,000 per investment).
First Employee Wage Credit: New businesses hiring at least one full-time employee can receive a tax credit equal to 25% of qualified wages, up to $10,000 annually (with a total limit of $40,000).
Employment Support: The wage credit can be elected to offset payroll taxes, reducing labor costs for small businesses.
Investor Restrictions: To qualify for the investor credit, individuals must be US citizens or residents, materially participate in the business, and have an average annual adjusted taxable income not exceeding $100,000 ($200,000 for joint filers).
Effective Date: The amendments apply to qualified investments and taxable years beginning after December 31, 2024.
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Additional Information
Print number: 118_HR_9781
Sponsor: Rep. Chu, Judy [D-CA-28]
Process start date: 2024-09-24
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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 118_HR_9781.

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 2024-09-24.

What are the main provisions?

Key points include:

  • Investor Tax Credit: Individuals investing in qualifying start-ups (via stock acquisition or loans) can claim a credit of 10% of the investment amount, capped at $10,000 annually (with a total limit of $50,000 per investment).
  • First Employee Wage Credit: New businesses hiring at least one full-time employee can receive a tax credit equal to 25% of qualified wages, up to $10,000 annually (with a total limit of $40,000).
  • Employment Support: The wage credit can be elected to offset payroll taxes, reducing labor costs for small businesses.
  • Investor Restrictions: To qualify for the investor credit, individuals must be US citizens or residents, materially participate in the business, and have an average annual adjusted taxable income not exceeding $100,000 ($200,000 for joint filers).
  • Effective Date: The amendments apply to qualified investments and taxable years beginning after December 31, 2024.
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-28].

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 2025-12-30.

CATEGORIES

Taxes Economy Labor