[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5939 Introduced in House (IH)]
<DOC>
118th CONGRESS
1st Session
H. R. 5939
To require the Administrator of the Small Business Administration to
establish a program to encourage small business concerns to make
business succession plans, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 12, 2023
Mr. Crow (for himself and Mr. Garbarino) introduced the following bill
October 25, 2023
Referred to the Committee on Small Business, and in addition to the
Committee on Ways and Means, for a period to be subsequently determined
by the Speaker, in each case for consideration of such provisions as
fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To require the Administrator of the Small Business Administration to
establish a program to encourage small business concerns to make
business succession plans, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Small Business Succession Planning
Act''.
SEC. 2. BUSINESS SUCCESSION PLANS FOR SMALL BUSINESS CONCERNS.
(a) In General.--The Administrator of the Small Business
Administration shall establish a program to help small business
concerns develop and implement business succession plans.
(b) Toolkit.--The Administrator, in consultation with resource
partners, shall develop a toolkit to assist small business concerns in
establishing a business succession plan. Such toolkit shall be made
available on a public website of the Administration.
(c) Program Components.--The Administrator--
(1) shall train resource partners on using the toolkit
described in subsection (b) with small business concerns;
(2) shall educate small business concerns about the program
established under this section;
(3) shall ensure that each district office of the
Administration and each resource partner described in
subparagraphs (B) through (E) has an employee with the specific
job responsibility of providing counseling, in person or
virtually, to small business concerns on use of the toolkit
described in subsection (b); and
(4) may hold workshops or events on business succession
planning.
(d) Plan.--Not later than 120 days after the date of the enactment
of this Act, the Administrator shall submit to the appropriate
committees a plan for increasing the amount of small business concerns
that have business succession plans. Such plan shall include a
description of methods to increase the frequency and use of business
succession plans by small business concerns owned and controlled by
socially and economically disadvantaged individuals (as defined in
section 8(d)(3)(C) of the Small Business Act (15 U.S.C. 637(d)(3)(C))).
(e) Tax Credit for Small Business Concerns Which Complete a
Business Succession Plan.--
(1) In general.--Subpart D of part IV of subchapter A of
chapter 1 of the Internal Revenue Code of 1986 is amended by
adding at the end the following new section:
``SEC. 45AA. BUSINESS SUCCESSION PLAN CREDIT.
``(a) In General.--For purposes of section 38, the business
succession plan credit determined under this section is--
``(1) $250 for the first taxable year during which the
Administrator of the Small Business Administration certifies
that the taxpayer has established a business succession plan,
that the taxpayer is a small business concern at the time that
such plan is established, and that such plan does not provide
for substantially all of the interests or assets of small
business concern to be acquired by one or more entities which
are not small business concerns, and
``(2) $250 for the first taxable year during which such
Administrator certifies that the taxpayer has successfully
completed a succession of responsibilities pursuant to a
business succession plan which was certified under paragraph
(1), that the taxpayer is a small business concern immediately
after such succession, and that the business with respect to
which such business succession plan relates was a small
business concern immediately prior to such succession.
``(b) Recapture of Credits.--
``(1) Recapture of credit for establishment of plan.--If,
during the 3-year period beginning on the date of the
establishment of a business succession plan described in
subsection (a)(1), substantially all of the equity interests in
the taxpayer or substantially all of the assets of the taxpayer
are acquired by one or more entities which are not small
business concerns, the taxpayer's tax imposed under this
chapter for the taxable year during which such interest or
assets are so acquired shall be increased by amount of the
credit allowed to the taxpayer under subsection (a)(1) for such
taxable year or any prior taxable year.
``(2) Recapture of credit for completion of succession.--
If, during the 3-year period beginning on the date of the
completion of a succession of responsibilities described in
subsection (a)(2), substantially all of the equity interests in
the taxpayer or substantially all of the assets of the taxpayer
are acquired by one or more entities which are not small
business concerns, the taxpayer's tax imposed under this
chapter for the taxable year during which such interests or
assets are so acquired shall be increased by amount of the
credit allowed to the taxpayer under subsection (a)(2) for such
taxable year or any prior taxable year.
``(c) Definitions.--For purposes of this section, the terms `small
business concern' and `business succession plan' have the respective
meanings given such terms under section 2(g) of the Small Business
Succession Planning Act.''.
(2) Credit allowed as part of general business credit.--
Section 38(b) of such Code is amended by striking ``plus'' at
the end of paragraph (39), by striking the period at the end of
paragraph (40) and inserting ``, plus'', and by adding at the
end the following new paragraph:
``(41) the business succession plan credit determined under
section 45AA(a).''.
(3) Clerical amendment.--The table of sections for subpart
D of part IV of subchapter A of chapter 1 of such Code is
amended by adding at the end the following new item:
``Sec. 45AA. Business succession plan credit.''.
(4) Report to congress.--Not later than 90 days after the
date of the enactment of this Act, the Secretary of the
Treasury (or the Secretary's delegate) shall submit a report to
the Committee on Ways and Means of the House of Representatives
and the Committee on Finance of the Senate describing the steps
which will be taken to enforce the recapture provisions of
section 45AA(b) of the Internal Revenue Code of 1986, as added
by this section.
(5) Effective date.--The amendments made by this subsection
shall apply to taxable years ending after the date of the
enactment of this Act.
(f) Authorization of Appropriations.--There is authorized to be
appropriated to the Administrator such sums as may be necessary for
fiscal years 2024 through 2029 to carry out the requirements of this
section.
(g) Definitions.--In this section:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Small Business Administration.
(2) Administration.--The term ``Administration'' means the
Small Business Administration.
(3) Appropriate committees.--The term ``appropriate
committees'' means--
(A) the Committee on Small Business and
Entrepreneurship and the Committee on Appropriations of
the Senate; and
(B) the Committee on Small Business and the
Committee on Appropriations of the House of
Representatives.
(4) Business succession plan.--The term ``business
succession plan'' means a document that--
(A) identifies an individual who will assume the
responsibilities of the owner to a small business
concern upon the death or retirement of such owner,
along with the legal documents necessary; and
(B) includes an operational description of the
small business concern to ensure the continuation of
operations of such concern.
(5) Resource partners.--The term ``resource partners''
means--
(A) any office of the Administration;
(B) small business development centers (defined in
section 3 of the Small Business Act (15 U.S.C. 632));
(C) women's business centers (described under
section 29 of such Act (15 U.S.C. 656));
(D) chapters of the Service Corps of Retired
Executives (established under section 8(b)(1)(B) of
such Act (15 U.S.C. 637(b)(1)(B)));
(E) Veteran Business Outreach Centers (described
under section 32 of such Act (15 U.S.C. 657b)); and
(F) any other entity, as determined by the
Administrator.
(6) Small business concern.--The term ``small business
concern'' has the meaning given under section 3 of the Small
Business Act (15 U.S.C. 632).
<all>