Incentivizing Small Business Employee Retention Act of 2026

The Incentivizing Small Business Employee Retention Act of 2026 expands tax incentives for small businesses by extending the Work Opportunity Credit through September 30, 2030, and introducing a new multi-year credit structure. Under this enhanced provision, qualified small businesses can claim additional tax credits based on wages paid to employees in their second through fifth years of employment, with the credit percentage increasing from 50 percent to 100 percent over that period. The bill also doubles the annual deduction limit for expenditures made to remove architectural and transportation barriers for individuals with disabilities and older adults from $15,000 to $30,000, while explicitly including improvements to internet and telecommunications accessibility in this category. Additionally, the legislation requires the Treasury Department to submit annual reports to Congress through 2030 detailing the number of businesses using the new credit, their employee retention rates, and the overall fiscal impact of these changes.