Small Business Succession Planning Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9051 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                                H. R. 9051

 To require the Administrator of the Small Business Administration to
   establish a program to encourage small business concerns to make
           business succession plans, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 29, 2026

Mr. Crow (for himself and Mr. Garbarino) introduced the following bill;
which was referred to the Committee on Small Business, and in addition
  to the Committee on Ways and Means, for a period to be subsequently
   determined by the Speaker, in each case for consideration of such
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL

 To require the Administrator of the Small Business Administration to
   establish a program to encourage small business concerns to make
           business succession plans, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Business Succession Planning
Act''.

SEC. 2. BUSINESS SUCCESSION PLANS FOR SMALL BUSINESS CONCERNS.

    (a) In General.--The Administrator of the Small Business
Administration shall establish a program to help small business
concerns develop and implement business succession plans.
    (b) Toolkit.--The Administrator, in consultation with resource
partners, shall develop a toolkit to assist small business concerns in
establishing a business succession plan. Such toolkit shall be made
available on a public website of the Administration.
    (c) Program Components.--The Administrator--
            (1) shall train resource partners on using the toolkit
        described in subsection (b) with small business concerns;
            (2) shall educate small business concerns about the program
        established under this section;
            (3) shall ensure that each district office of the
        Administration and each resource partner described in
        subparagraphs (B) through (E) has an employee with the specific
        job responsibility of providing counseling, in person or
        virtually, to small business concerns on use of the toolkit
        described in subsection (b); and
            (4) may hold workshops or events on business succession
        planning.
    (d) Plan.--Not later than 120 days after the date of the enactment
of this Act, the Administrator shall submit to the appropriate
committees a plan for increasing the amount of small business concerns
that have business succession plans. Such plan shall include a
description of methods to increase the frequency and use of business
succession plans by small business concerns owned and controlled by
socially and economically disadvantaged individuals (as defined in
section 8(d)(3)(C) of the Small Business Act (15 U.S.C. 637(d)(3)(C))).
    (e) Tax Credit for Small Business Concerns Which Complete a
Business Succession Plan.--
            (1) In general.--Subpart D of part IV of subchapter A of
        chapter 1 of the Internal Revenue Code of 1986 is amended by
        adding at the end the following new section:

``SEC. 45BB. BUSINESS SUCCESSION PLAN CREDIT.

    ``(a) In General.--For purposes of section 38, the business
succession plan credit determined under this section is--
            ``(1) $250 for the first taxable year during which the
        Administrator of the Small Business Administration certifies
        that the taxpayer has established a business succession plan,
        that the taxpayer is a small business concern at the time that
        such plan is established, and that such plan does not provide
        for substantially all of the interests or assets of small
        business concern to be acquired by one or more entities which
        are not small business concerns, and
            ``(2) $250 for the first taxable year during which such
        Administrator certifies that the taxpayer has successfully
        completed a succession of responsibilities pursuant to a
        business succession plan which was certified under paragraph
        (1), that the taxpayer is a small business concern immediately
        after such succession, and that the business with respect to
        which such business succession plan relates was a small
        business concern immediately prior to such succession.
    ``(b) Recapture of Credits.--
            ``(1) Recapture of credit for establishment of plan.--If,
        during the 3-year period beginning on the date of the
        establishment of a business succession plan described in
        subsection (a)(1), substantially all of the equity interests in
        the taxpayer or substantially all of the assets of the taxpayer
        are acquired by one or more entities which are not small
        business concerns, the taxpayer's tax imposed under this
        chapter for the taxable year during which such interest or
        assets are so acquired shall be increased by amount of the
        credit allowed to the taxpayer under subsection (a)(1) for such
        taxable year or any prior taxable year.
            ``(2) Recapture of credit for completion of succession.--
        If, during the 3-year period beginning on the date of the
        completion of a succession of responsibilities described in
        subsection (a)(2), substantially all of the equity interests in
        the taxpayer or substantially all of the assets of the taxpayer
        are acquired by one or more entities which are not small
        business concerns, the taxpayer's tax imposed under this
        chapter for the taxable year during which such interests or
        assets are so acquired shall be increased by amount of the
        credit allowed to the taxpayer under subsection (a)(2) for such
        taxable year or any prior taxable year.
    ``(c) Definitions.--For purposes of this section, the terms `small
business concern' and `business succession plan' have the respective
meanings given such terms under section 2(g) of the Small Business
Succession Planning Act.''.
            (2) Credit allowed as part of general business credit.--
        Section 38(b) of such Code is amended by striking ``plus'' at
        the end of paragraph (40), by striking the period at the end of
        paragraph (41) and inserting ``, plus'', and by adding at the
        end the following new paragraph:
            ``(42) the business succession plan credit determined under
        section 45BB(a).''.
            (3) Clerical amendment.--The table of sections for subpart
        D of part IV of subchapter A of chapter 1 of such Code is
        amended by adding at the end the following new item:

``Sec. 45BB. Business succession plan credit.''.
            (4) Report to congress.--Not later than 90 days after the
        date of the enactment of this Act, the Secretary of the
        Treasury (or the Secretary's delegate) shall submit a report to
        the Committee on Ways and Means of the House of Representatives
        and the Committee on Finance of the Senate describing the steps
        which will be taken to enforce the recapture provisions of
        section 45BB(b) of the Internal Revenue Code of 1986, as added
        by this section.
            (5) Effective date.--The amendments made by this subsection
        shall apply to taxable years ending after the date of the
        enactment of this Act.
    (f) Authorization of Appropriations.--There is authorized to be
appropriated to the Administrator such sums as may be necessary for
fiscal years 2026 through 2031 to carry out the requirements of this
section.
    (g) Definitions.--In this section:
            (1) Administrator.--The term ``Administrator'' means the
        Administrator of the Small Business Administration.
            (2) Administration.--The term ``Administration'' means the
        Small Business Administration.
            (3) Appropriate committees.--The term ``appropriate
        committees'' means--
                    (A) the Committee on Small Business and
                Entrepreneurship and the Committee on Appropriations of
                the Senate; and
                    (B) the Committee on Small Business and the
                Committee on Appropriations of the House of
                Representatives.
            (4) Business succession plan.--The term ``business
        succession plan'' means a document that--
                    (A) identifies an individual who will assume the
                responsibilities of the owner to a small business
                concern upon the death or retirement of such owner,
                along with the legal documents necessary; and
                    (B) includes an operational description of the
                small business concern to ensure the continuation of
                operations of such concern.
            (5) Resource partners.--The term ``resource partners''
        means--
                    (A) any office of the Administration;
                    (B) small business development centers (defined in
                section 3 of the Small Business Act (15 U.S.C. 632));
                    (C) women's business centers (described under
                section 29 of such Act (15 U.S.C. 656));
                    (D) chapters of the Service Corps of Retired
                Executives (established under section 8(b)(1)(B) of
                such Act (15 U.S.C. 637(b)(1)(B)));
                    (E) Veteran Business Outreach Centers (described
                under section 32 of such Act (15 U.S.C. 657b)); and
                    (F) any other entity, as determined by the
                Administrator.
            (6) Small business concern.--The term ``small business
        concern'' has the meaning given under section 3 of the Small
        Business Act (15 U.S.C. 632).
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