Providing Real Opportunities for Growth to Rising Entrepreneurs for Sustained Success (PROGRESS) Act

The PROGRESS Act creates two new tax credits to support small business growth. The Small Business Investor Tax Credit allows individuals to claim up to a $10,000 annual credit (adjusted for inflation) for investing in qualifying small businesses that meet specific requirements, including having at least one full-time employee and being majority-owned by individuals with incomes below $100,000 (or $200,000 for married couples filing jointly). The First Employee Business Wage Credit enables small businesses to claim up to a $10,000 annual credit (adjusted for inflation) for wages paid to their first employee, with similar eligibility criteria. Both credits apply to taxable years beginning after December 31, 2024. These provisions aim to encourage investment in small businesses and support the hiring of initial employees.