Congressman Jose E. Serrano (D-NY-15) has introduced the Incentivize Growth Now In Tomorrow’s Entrepreneurs (IGNITE) Act, legislation to facilitate access to credit for entrepreneurs launching small businesses of less than 50 employees.
The IGNITE act would allow potential entrepreneurs, who often have to rely on credit cards and other risky credit tools, to set aside up to $10,000 (or the amount of compensation includible in the taxpayer’s gross income for the taxable year) in tax free savings accounts for start-up expenses. This will allow them to launch their business—which is in itself a risky endeavor—without having to resort to extreme debt. This will serve as an incentive for people to launch their businesses and thereby increase the likelihood of success for start-ups.
“Small businesses are the back-bone of the U.S. economy. In the Bronx, they serve as the path to greater economic and professional opportunities for many of my constituents and create thousands of jobs. Unfortunately, too often people refrain from launching their own business for fear of the economic risk it entails and/or lack of access to capital. We need to provide entrepreneurs with the tools and incentives they need to launch and grow their business. The IGNITE Act will help entrepreneurs in the Bronx, New York, and all across America to launch and grow their businesses successfully, and improve our local and national economy by creating new jobs,” said Congressman Serrano.
Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.