Representative Amy Elik (District 111) and Senator Doris Turner (District 48) filed legislation to empower small businesses to make investment decisions based upon operational needs rather than arbitrary tax timelines.

“In Illinois, we need to make it easier for small businesses to thrive,” said Representative Amy Elik. “My legislation would give small business owners new tools to invest in their future and grow our local economies across Illinois.”

“Small businesses are the backbone of our communities,” said Senator Doris Turner. “No big business can match the care and support of a local mom and pop shop. It’s time we allow small businesses to make necessary improvements that will allow them to grow and thrive.”

The legislation, HB 4874 in the House and SB 3614 in the Senate, provides for the creation of “small business asset purchase accounts.”

Small businesses would be eligible to contribute up to $100,000 per year to these small business asset purchase accounts and receive:

– A 50% income tax deduction in the tax year the small-business owner contributes the funds.

–  A 50% income tax deduction in the tax year the small-business owner withdraws the funds from the Small Business Savings Account for qualified capitol expenses.

The accounts would free small-business owners from the artificial constraints of the tax calendar, allowing them to re-invest their hard-earned funds at the optimal time and for their most pressing needs while avoiding unnecessary financing costs.