As part of her economic plan, Vice President Harris will propose expanding tax cuts for Americans starting small businesses, a Harris campaign official told The Hill.
The proposal would expand the tax credit for small business start-up costs tenfold, from $5,000 to $50,000, and if elected president, Harris would aim to see 25 million new small business applications during her first term.
Harris is expected to announce the plan on Wednesday while campaigning in New Hampshire.
The plan would allow new businesses to wait to claim the deduction until they are profitable in order to reduce their taxes. For example, a small business that makes $15,000 in first-year profits could deduct that amount and save the rest for the future, officials said.
The official said the average cost of starting a business is $40,000 and noted that the 25 million goal will be furthered by 19 million new small business applications under the Biden administration.
The vice president is also expected to propose measures aimed at streamlining red tape for starting a small business, including creating a standard deduction for small businesses to reduce the time and cost of filing taxes and reducing professional licensing barriers for businesses to expand into other states.
The proposal also includes a Small Business Expansion Fund to help local banks cover the interest costs of small businesses looking to expand, and a guarantee that one-third of federal contract money goes to small businesses.
Last month, Harris outlined an economic plan to create an “opportunity economy,” including proposals to end federal price gouging, help build new homes and provide down payment assistance to first-time homebuyers to help end the housing shortage, and expand the child tax credit.
