Tax credit for new small businesses.

Authors: Representative Melanie Wright

Digest

Provides that a taxpayer that is a qualified small business startup is entitled to a graduated tax credit against adjusted gross income tax liability. Defines a "qualified small business startup" as a business that: (1) is not part of an affiliated group of corporations or under common control; (2) has fewer than 10 full-time employees; (3) has sales of not more than $1,000,000; (4) is not publicly traded; and (5) during the preceding five years, was in the first year of employer compliance concerning worker's compensation requirements. The amount of the graduated tax credit is: (1) 100% of adjusted gross income tax liability for the first taxable year of the qualified small business startup; (2) 80% of adjusted gross income tax liability for the second consecutive taxable year of the qualified small business startup; (3) 60% of adjusted gross income tax liability for the third consecutive taxable year of the qualified small business startup; (4) 40% of adjusted gross income tax liability for the fourth consecutive taxable year of the qualified small business startup; and (5) 20% of adjusted gross income tax liability for the fifth consecutive taxable year of the qualified small business startup.