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September 18, 2018

Maffei Introduces Legislation to Create Tax-Free Small Business Startup Savings Accounts


Washington, DC – Rep. Dan Maffei introduced The Incentivize Growth Now In Tomorrow’s Entrepreneurs (IGNITE) Act  today, a bill to help Central New York small business owners grow and create new jobs.

Maffei’s proposed legislation will enable individuals to create tax-free savings accounts to start a small business.

The accounts would function similar to Roth IRA retirement savings accounts, allowing individuals to save money to start a small business on a tax-free basis. This legislation is one of several recommendations made in the comprehensive plan to create jobs Maffei released earlier this year.

This legislation is based on the input he received from small business owners during his district-wide listening tour.

“Today I introduced a bill that will help Central New York businesses grow and create more jobs in our region,” said Maffei. “This legislation is based on what I heard from dozens of business owners during my district-wide listening tour. This bill would help set the wheels in motion for Central New Yorkers trying to start a new business. This legislation would enable Central New York entrepreneurs to open start-up accounts that would work like a Roth IRA for small businesses, allowing them to save and invest money for their future small businesses on a tax-free basis. This would help entrepreneurs avoid having to go into debt or raid their retirement savings in order to start a business. I look forward to working with businesses throughout the district and my colleagues in the House to push for this legislation’s passage.”

Background

This legislation is derived from the input Central New York business owners gave Maffei during his district-wide listening tour.

Since taking office Maffei has held 10 round table discussions on job creation in all four counties throughout the 24th Congressional District.

He met with more than 150 local business owners and economic development leaders and listened to their thoughts and ideas about how to create more jobs and grow Central New York’s economy. In April, Maffei marked his first 100 days in office with the announcement of a new plan to create jobs and grow Central New York’s economy at a press conference at the Central New York Philanthropy Center.

Maffei was joined by dozens of Central New York business leaders, small business owners, and economic leaders.

The Incentivize Growth Now in Tomorrow’s Entrepreneurs (IGNITE) Act amends the Internal Revenue Code to create Small Business Start-up Savings Accounts, which would allow aspiring entrepreneurs who want to start a small business to grow their savings tax-free and withdraw the savings for qualified expenses associated with starting a business, such as purchasing equipment, marketing, or legal fees.

The accounts are for the creation of small businesses with 50 or fewer employees and allows individuals to save up to $10,000 a year.

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