H.R. 9051: Small Business Succession Planning Act

This bill, known as the Small Business Succession Planning Act, aims to support small businesses in creating and implementing business succession plans. A business succession plan is a document that identifies who will take over a business when the current owner retires or passes away, ensuring the continuity of business operations. Here are the key components of the bill:

Establishment of a Support Program

The bill directs the Administrator of the Small Business Administration (SBA) to create a program specifically designed to assist small businesses in developing succession plans.

Toolkit Development

The SBA will create a toolkit that small businesses can utilize to establish their succession plans. This toolkit will be publicly accessible on the SBA's website and will include resources and templates to guide businesses through the process.

Training and Education

The program will include training for resource partners—organizations that help small businesses—on how to use the toolkit effectively. Additionally, the SBA will inform small businesses about the available resources and programs through this initiative.

Workshops and Counseling

The SBA may also conduct workshops or events focused on business succession planning, and ensure that its district offices and partners have qualified personnel to provide counseling on utilizing the toolkit.

Focus on Disadvantaged Individuals

The SBA will submit a plan aimed at increasing the number of succession plans among small businesses owned by socially and economically disadvantaged individuals, as defined in existing Small Business Act regulations.

Tax Credit Incentives

The bill proposes a tax credit for small businesses that complete a business succession plan. The tax credit includes:

• $250 for the first year a business establishes a certified succession plan.
• An additional $250 for the year that the business successfully transitions responsibilities to the new owner as outlined in the plan.

However, if the business is acquired by a non-small business entity within three years of establishing the plan, the tax credits may be recaptured, meaning the business would have to pay back the credit amounts.

Authorization of Appropriations

The bill authorizes the appropriation of necessary funds for the SBA to implement the required activities over a five-year period from 2026 to 2031.

Reporting Requirements

The Secretary of the Treasury will be required to report to Congress within 90 days of the bill's enactment on how the SBA will enforce the credit recapture provisions.

Definitions and Clarifications

The bill includes various definitions, such as what constitutes a small business concern and what qualifies as a business succession plan. It also clarifies the responsibilities of the SBA and its partners in supporting the program.

Relevant Companies

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