Us Congress 2023-2024 Regular Session

Us Congress House Bill HB313

Introduced
1/12/23  

Caption

Small Business Emergency Savings Accounts Act of 2023 This bill allows a new tax deduction from gross income for amounts paid into a small business emergency savings account. Such savings accounts are established exclusively to pay the qualified disaster and public health emergency expenses of the account beneficiary. The bill defines qualified disaster and public health emergency expenses as disaster loss replacement expenses, disaster recovery operations expenses, and public health emergency expenses.

Impact

The bill notably defines 'qualified disaster and public health emergency expenses'. These include expenses related to disaster loss replacements, disaster recovery operations, and public health emergencies. The ability for small businesses to save tax-free for emergencies could bolster their financial resilience during challenging periods. Moreover, these accounts could streamline the way businesses manage unforeseen expenses, potentially reducing the broader economic impact of disasters or health crises.

Summary

House Bill 313, titled the ‘Small Business Emergency Savings Accounts Act of 2023’, proposes amendments to the Internal Revenue Code to establish small business emergency savings accounts. These accounts allow eligible small businesses to deduct contributions made towards these accounts from their gross income. The intent of the bill is to provide financial support to small businesses during disasters or public health emergencies by facilitating savings specifically earmarked for such situations.

Contention

However, there may be concerns regarding the bill's implementation and oversight. The provisions specify that if distributions from the emergency savings accounts are not used for the defined purposes, they could be subject to a significant additional tax, thus leading to potential misunderstandings among small business owners. Environmental considerations may also arise, questioning whether these savings mechanisms sufficiently address the nuances of disaster-related expenses. Overall, while the bill seeks to strengthen small business financial security, its practical application and potential pitfalls warrant careful consideration.

Companion Bills

No companion bills found.

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