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H.R. 1180 sponsored by Rep. Cory Gardner (R-CO-4) would:
- Amend the Internal Revenue Code of 1986 to establish small business start-up savings accounts
- H.R. 1180, like S. 364, establishes tax-free startup savings accounts.
- Businesses with 500 or fewer employees will be eligible to open a savings account.
- Contributions to the account would be capped at $10,000 per year and the total value of these accounts at any one time would be capped at $150,000.
- As long as the money is used within 5 years of the first distribution, account holders do not have to worry about fees or penalties.
- Account holders could use the funds for the costs of business creation or expansion, such as the purchase of equipment or facilities, marketing, training, incorporation or accounting cost
AVMA established a record of support for similar legislation in the 111th Congress when it supported S. 2985/H.R. 4309, Small Start-up Savings Accounts Act (SBSSA). This legislation would have established tax-exempt SBSSAs for qualifying start-up costs to pay for trade or business expenses, including the purchase of equipment or facilities, capital costs, organizational expenses, marketing, training, incorporation, accounting fees within the first six months. The legislation also would have allowed annual contributions to SBSSAs up to $10,000 with a lifetime maximum of $150,000.
Ways and Means Committee
Gina Luke, Assistant Director, Governmental Relations Division, 202-289-3204