HARRISBURG – May 6, 2019 – With National Small Business Week (May 5- 11) now underway, state Sens. John Blake and Vincent J. Hughes today unveiled legislation that would create financial incentives to help small businesses succeed.
One bill in the package would create tax-deferred savings accounts for small businesses to shift their tax burden. The measure would allow profits to be deposited into tax deferred accounts. If the money deposited in the account is subsequently used for job creation, then the dollars could be used tax free.
“Far too often, we focus on adopting or adjusting state law to help large industries deal with market changes,” Blake said. “What many fail to realize is the importance of small business to our economy.”
The second bill would exempt business start-up fees for a host of business enterprises. These include women-owned, service-disabled veteran-owned business, minority-owned, disadvantaged small businesses or microenterprises. For other businesses that do not qualify for the full exemption, a 50 percent reduction in fees would be available.
“One of the biggest stumbling blocks to small business success is the added costs of running the operation,” Hughes said. “This legislation is intended to lower business costs, leading to greater success, more jobs and a healthier economy. We need to be doing whatever we can to open up business opportunities for a more diverse ownership base as a signal Pennsylvania supports all people who are pursuing their dreams.”
Small Business Week is a celebration of entrepreneurship and innovation. The week helps highlight the contributions of small business to the overall economy.
According to the Small Business Development Centers, there are nearly one million small businesses in Pennsylvania. Small firms make up more than 98 percent of state employers.
“Too many small business owners think they are isolated and unable to get financial help in dealing with costs of running a business,” Blake said. “This package of legislation is both innovative and practical.
“If adopted, the new laws would open a new avenue for businesses to save dollars and defray costs.”
Hughes said he is very concerned that high fees hobble many small businesses, especially those that are veteran-owned, minority or disadvantaged because they simply do not have working capital.
“Many potential small business owners think there are too many obstacles to success, so they are reluctant to engage,” Hughes said. “Our bills provide a pathway for small businesses to navigate financial issues.”
Hughes and Blake recently offered the bills for co-sponsorship. The measures were introduced last year as Senate Bills 1195-1196.