Relates to authorizing small business tax-deferred savings accounts

Bill A 7991 authorizes eligible small businesses to establish tax-deferred savings accounts. These accounts allow small businesses to deposit up to $5,000 annually, with both the deposits and any earned interest being tax-deferred. Funds withdrawn from these accounts are not taxed if used for "qualifying purposes," such as purchasing tangible business property or other expenditures that enhance competitiveness and create or retain jobs. However, withdrawals made for non-qualifying purposes would be included in the business's taxable income. The Department of Economic Development and the Department of Taxation and Finance will provide annual reports on the program's utilization and economic impact.