Hughes, Blake sponsor legislation to create financial incentives
Harrisburg – June 7, 2018 – New legislation designed to aid small business through specific financial incentives such as tax-deferred savings accounts and exemptions from certain business fees was unveiled today by Senators Vincent J. Hughes (D-Philadelphia) and John Blake (D-Lackawanna).
“Small business is the backbone of our economy and we need to do even more to support their efforts,” Hughes said. “The legislation in this package is both innovative and targeted for maximum affect.”
There are 2.5 million employees of small business In Pennsylvania, representing 47 percent of all employees.
“There are many challenges that confront small business as they try to develop a market niche,” Blake said. “Helping small business grow creates jobs, improves the economic climate and provides greater business growth opportunities in the future.”
One bill (Senate Bill 1196) in the two-piece plan would create tax-deferred savings accounts for small business. The proposal, patterned after legislation in New York state, allows any small business to deposit profits into tax deferred accounts. The funding can then be used tax free, provided the money is targeted for job creation.
A second measure (Senate Bill 1195) in the package would exempt business start-up fees for women-owned, service-disabled veteran-owned small business, minority-owned, disadvantaged small business or microenterprise. Fees for other businesses who do not receive the full exemption will have a 50 percent reduction in the cost of those fees. The exempted fees must be used for opening a business.
“We need to recognize the contributions that small businesses make to our economy and do more to support their efforts,” Hughes said. “The bills in the package are intended to help small business prosper.”
There are more than one million small businesses in Pennsylvania. Small firms make up 98 percent of state employers.
“It is important to find new and effective methods to help small business,” Blake said. “There are actions that can be taken by state government to relieve burdens that small employers face as they build their businesses.
“The legislation addresses cost drivers that impact business operations.”
The median income for self-employed individuals at their own firms was $25,566. Pennsylvania has 131,462 minority-owned businesses.