Small Business Succession Planning Act
Sponsored By: Representative Crow, Jason [D-CO-6]
Introduced
Summary
Helps small businesses plan and pass ownership to the next generation by pairing SBA-run training and counseling with a small tax credit. The bill would create an SBA program that gives a public toolkit, trains local resource partners, and offers a $250 tax credit for establishing a succession plan plus $250 when a certified succession is completed.
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- Small business owners: Would get a toolkit, counseling in every SBA district office, and workshops. Owners could claim a $250 credit when they set up a certified succession plan and another $250 when a certified succession is completed, subject to recapture rules within 3 years.
- Resource partners and local SBA offices: Would receive training and must each have an employee dedicated to counseling businesses on succession planning to improve takeup and use of the toolkit.
- Socially and economically disadvantaged small business owners: The SBA would submit a 120-day plan to Congress on how to increase succession-plan use among disadvantaged owners.
*Authorizes appropriations to the SBA as necessary for fiscal years 2026 through 2031 to run the program.*
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 1 benefits, 0 costs, 1 mixed.
Small business succession tax credit
If enacted, small businesses would be able to claim a $250 tax credit in the first taxable year the SBA certifies they established an eligible succession plan. They would also be able to claim a separate $250 credit in the first taxable year the SBA certifies they completed a certified succession, for up to $500 total. The credit would be part of the general business credit and apply to taxable years ending after enactment. If, within 3 years after establishment or completion, substantially all equity or assets are acquired by one or more entities that are not small business concerns, the credit would be recaptured and the taxpayer's tax would be increased by the credit amount in the year of that acquisition. The SBA must report to Congress within 90 days on steps to enforce recapture rules.
Small business succession help and funding
This bill would require the SBA to make and post a step-by-step toolkit to help small businesses create and carry out succession plans. The SBA would train local resource partners and must place a staff member in every SBA district office and in each partner group to give counseling in person or virtually. Resource partners would include SBA offices, small business development centers, women's business centers, SCORE chapters, and Veteran Business Outreach Centers. The SBA would be able to hold workshops and must send Congress a plan within 120 days to increase succession planning, including outreach to disadvantaged-owned small businesses. Congress could provide money for the program for fiscal years 2026 through 2031; the bill does not set dollar amounts.
Sponsors & CoSponsors
Sponsor
Crow, Jason [D-CO-6]
CO • D
Cosponsors
Rep. Garbarino, Andrew R. [R-NY-2]
NY • R
Sponsored 5/29/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov