The Badge-to-Business Act amends the Small Business Act to waive guarantee fees for express loans made to qualified career law enforcement officers starting January 1, 2027. To qualify, an officer must have completed at least ten years of service and not be facing a pending criminal investigation or administrative proceeding for misconduct related to their official duties. This fee waiver applies to both currently employed officers and those who have separated from service, provided they meet the conduct requirements at the time of application. The provision includes an exception allowing the Administrator to collect fees if the cost of guaranteeing these loans results in a net loss for the Administration in a given fiscal year.
The RISE Act introduces tax incentives to encourage small businesses to offer pension plans to their employees. It increases the startup tax credit for microemployers, allowing them to claim a larger credit for establishing a retirement plan starting in 2027. Additionally, the bill permits service providers who help set up these plans to receive a tax credit for the fees they waive to make the plans affordable. To prevent fraud, the law requires employers to certify that they have not previously received similar credits for the same group of workers. These changes aim to lower the financial barriers for small employers and their service partners to create retirement savings options.
The Small Business Innovation Voucher Act of 2026 creates a new grant program to help small businesses purchase technical assistance and services from universities and nonprofit research labs. Under this competitive program, the Small Business Administration will award grants ranging from $15,000 to $75,000 to cover between 50% and 75% of the cost for projects aimed at developing new products or services. To receive funding, small businesses must submit an application detailing their project, and selected recipients are required to report on their results and how the project impacted their business after completion. The legislation authorizes $10 million per year from 2026 through 2030 to fund these grants and covers administrative expenses with up to 5% of the total appropriation.
The Small Business Succession Planning Act directs the Small Business Administration to create a program and toolkit to help small business owners develop plans for transferring ownership upon retirement or death. To support this initiative, the bill requires the agency to train partners, educate business owners, and assign specific staff to provide counseling, while also allowing for workshops and reporting on progress. A key financial incentive is a new tax credit offering $250 for establishing a succession plan and another $250 for successfully completing the transfer of responsibilities, provided the business remains small. The legislation includes safeguards that require the repayment of these credits if the business is sold to a non-small entity within three years of receiving the award.
The Enhanced Small Business Growth Act of 2026 increases tax benefits for domestic manufacturers by raising the qualified business income deduction rate from 20 percent to 30 percent. To qualify, a business must derive at least 85 percent of its income from manufacturing tangible property, with at least 20 percent of production costs incurred within the United States. These changes apply to taxable years beginning after December 31, 2025, and modify how the deduction is calculated to ensure it is applied correctly.
The Small Business Tax Cut Act increases the qualified business income deduction from 20 percent to 23 percent for eligible taxpayers, directly affecting small business owners and investors. The bill modifies income thresholds that limit this deduction for higher earners and extends the phase-in rules for taxable income above certain limits. Additionally, it allows dividends from qualified business development companies to be treated similarly to qualified REIT dividends for deduction purposes. These changes apply to taxable years beginning after December 31, 2026.
This bill creates a tax credit for small employers who set up new dependent care flexible spending plans for their employees. The credit covers startup costs like plan establishment and employee education expenses, but only for the first three years after the plan begins. To qualify, the employer must not have previously offered a similar plan to the same employees, and the plan must include at least one non-highly compensated employee. The maximum credit is $500 in the first year and the next two years, or up to $250 per eligible employee, capped at $5,000 total.
This bill, titled the Small Business Liberation 2.0 Act, exempts small businesses from import duties imposed under Section 122 of the Trade Act of 1974 and requires refunds of any such duties already paid by small businesses. It also prohibits companies from raising prices on affected goods by more than the cost of the duties themselves during a five-year period following duty implementation. The Federal Trade Commission would enforce these rules, with state attorneys general allowed to bring civil actions against violators, while small businesses remain exempt from the price gouging restrictions.
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HR 996 extends and enhances a tax credit for employers that provide paid family and medical leave to employees. The bill gives eligible employers two options for claiming the credit: either a percentage of wages paid to employees on leave or a percentage of premiums paid for an insurance policy covering such leave (calculated as if leave were always available). It clarifies that state or local government-paid leave counts toward an employer’s leave provision but not toward the credit amount, and prevents double benefits by disallowing deductions for expenses used to claim the credit. The Small Business Administration and Internal Revenue Service must conduct outreach to help employers understand and access this credit.
HR 354, the Small Business Growth Act, increases tax deduction limits for small businesses purchasing equipment. It raises the annual deduction cap from $1 million to $2 million and the phaseout threshold from $2.5 million to $3.5 million under Section 179 of the tax code. These changes directly affect small businesses that buy qualifying depreciable assets like machinery or vehicles, allowing them to deduct more of the cost upfront. The provisions apply to property placed in service after December 31, 2025, with inflation adjustments updated to reference 2025 and 2026.
