State Representative Amy Elik introduced legislation to encourage small businesses to reinvest earnings in their communities.
The legislation—HB 4669 would create small-business savings accounts, allowing businesses to put aside up to $50,000 per year for future business investments.
If passed, funds contributed to these small-business savings accounts would be eligible for an income tax deduction in the year the small business contributed them. The business could then reinvest them later—as operational needs dictate—to build out its operations.
“I filed this bill to help small businesses save for their future investment in their business,” said Rep. Elik. “When a small business invests in their business, not only is it a win for them, it’s a win for their employees and the community they serve.”
“This legislation will free small-business owners’ reinvestment decisions from an arbitrary tax calendar,” said Noah Finley, NFIB Illinois State Director. “Instead of having to make investments based upon the tax year, business owners will be able to choose the optimal time to reinvest in their businesses.”
“Legislation that allows small businesses the autonomy to make smart business decisions is good legislation,” said Lou Sandoval, CEO of the Illinois Chamber of Commerce. “This legislation does just that along with the ability to direct investments into their businesses which is solid pro-business policy, which is the key reason we support this bill.”
“Small manufacturers invest in their employees and facilities annually. Small business savings accounts represent a smart and sensible way for these small companies to make investments in their companies that will lead to job growth in Illinois,” said Mark Denzler, president & CEO of the Illinois Manufacturers’ Association. “It allows for greater flexibility when making these strategic decisions.”
“In the construction industry, headwinds, including tight credit conditions, elevated materials prices, rising wages and worker shortages challenge the 8 out of 10 contractors that are also small businesses,” said Alicia Martin, president of Associated Builders and Contractors Illinois. “We commend Rep. Elik for supporting the entrepreneurial businesses that build the places where America lives, works, plays, heals and prays so they can continue to invest in their communities.”
The legislation is supported by the Illinois Chamber of Commerce, the National Federation of Independent Business (NFIB), the Illinois Manufacturers’ Association, the Associated Builders and Contractors, the Technology and Manufacturing Association, the Chicagoland Chamber of Commerce, and the Illinois Trucking Association.