Providing Real Opportunities for Growth to Rising Entrepreneurs for Sustained Success (PROGRESS) Act

The PROGRESS Act creates two new tax credits to support small businesses that hire their first employee. The Small Business Investor Tax Credit allows investors to claim up to 10% of their investment (capped at $10,000 annually) in qualifying businesses that meet specific wage and ownership requirements. The First Employee Business Wage Credit provides a 25% credit on wages paid to the business's first employee, also capped at $10,000 annually. Both credits require businesses to certify they have at least one full-time employee and meet income limits for investors. These provisions apply to taxable years beginning after December 31, 2024.