ABC Act of 2023 Access Business Credit Act of 2023
Impact
If enacted, the changes brought by HB3060 would significantly impact small business financing, particularly benefiting businesses in the agricultural sector and those falling under the broader category of small business concerns as defined by the Small Business Act. The exclusion of interest from taxable income would reduce the financial burden on these businesses, potentially leading to increased access to credit and enhanced growth opportunities.
Summary
House Bill 3060, introduced as the Access Business Credit Act of 2023, aims to amend the Internal Revenue Code to provide a tax exclusion for interest on certain small business loans. Specifically, the bill proposes that gross income does not include interest received from small businesses on loans not exceeding $5 million, which are secured by real estate used for farming or incurred during normal business operations.
Contention
Discussions around HB3060 may hinge on various points of contention, especially regarding its potential fiscal implications. Critics may argue that the exclusion could decrease federal tax revenues, raising concerns about funding for essential programs. Additionally, there may be debates about whether this measure disproportionately benefits certain types of businesses over others, potentially leading to discussions regarding fairness in tax policy and equity in access to financial resources.