Small Business Succession Planning Act
- Bill Number
- H.R. 9051
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Commerce
- Status
- Introduced
- Latest Action
- 2026-05-29: Referred to the Committee on Small Business, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- Last Updated
- 2026-06-30T20:23:39Z
AI-Generated Summary
Summary of H.R. 9051: Small Business Succession Planning Act
Purpose
The legislation directs the Small Business Administration (SBA) to create a program that encourages small businesses to prepare plans for transferring ownership and operations upon an owner's death or retirement. It also introduces tax incentives to promote these plans while protecting the small business status of participating firms.
Key Provisions
- Program Establishment: The SBA Administrator must set up a program to assist small businesses in developing and implementing succession plans, including a public toolkit developed with input from partner organizations.
- Support and Training: The SBA will train its resource partners, educate businesses about the program, assign dedicated staff in district offices for counseling (in-person or virtual), and may organize workshops or events.
- Reporting Requirement: Within 120 days of enactment, the Administrator must submit a plan to Congress for increasing the use of succession plans, with emphasis on businesses owned by socially and economically disadvantaged individuals.
- Tax Credit: A new nonrefundable credit of $250 is available under the Internal Revenue Code for the first year a business establishes a certified succession plan, and another $250 upon successful completion of the succession, provided the business remains a small business concern.
- Recapture Rules: Credits must be repaid if, within three years of establishment or completion, the business's assets or equity are acquired by non-small business entities.
- Funding: Appropriations are authorized for fiscal years 2026 through 2031 to implement the program.
Significant Changes to Existing Law
- Adds a new section (45BB) to the Internal Revenue Code creating the Business Succession Plan Credit and integrates it into the general business credit under section 38.
- Introduces recapture mechanisms for the new tax credit, which did not previously exist for this purpose.
- Expands SBA responsibilities by mandating a dedicated succession planning program and specific staffing requirements, beyond current small business support activities.
Potential Impacts
- Government Agencies: The SBA gains new administrative duties, including toolkit development, training, and reporting; the IRS will handle credit certification and enforcement of recapture provisions.
- Citizens and Businesses: Small business owners may benefit from free tools, counseling, and tax savings to facilitate smoother ownership transitions, potentially reducing business closures.
- International Relations: No direct effects are outlined in the legislation.
Main Stakeholders Affected
- Small business concerns and their owners, particularly those owned by socially and economically disadvantaged individuals.
- SBA resource partners, such as Small Business Development Centers, Women's Business Centers, Service Corps of Retired Executives chapters, and Veteran Business Outreach Centers.
- Congressional committees on Small Business and Appropriations in both chambers, as well as the House Ways and Means and Senate Finance Committees for tax-related oversight.
- The Department of the Treasury and IRS for tax credit administration.
Notable Legal, Constitutional, or Political Implications
- The bill creates a voluntary tax incentive with enforcement safeguards, raising standard tax administration issues but no apparent constitutional concerns.
- It includes specific definitions for "business succession plan" and "small business concern" to clarify eligibility and limit benefits to qualifying entities.
- The legislation reflects a bipartisan approach to supporting small business continuity without mandating participation.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Rep. Garbarino, Andrew R. [R-NY-2]
Recent Actions
- 2026-05-29: Referred to the Committee on Small Business, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2026-05-29: Referred to the Committee on Small Business, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2026-05-29: Introduced in House
- 2026-05-29: Introduced in House
Bill Versions
- Small Business Succession Planning Act — issued 2026-05-29 — PDF (8 pages)