Incentivizing Small Business Employee Retention Act of 2026

This bill would change federal tax law in two main ways. It would double the yearly cap on the tax deduction businesses can take for removing barriers for people with disabilities and older adults, from $15,000 to $30,000, and would let that deduction cover improving access to internet and telecommunications services in business facilities and vehicles. It would extend the Work Opportunity Tax Credit, which is given to employers who hire workers from certain groups, through September 30, 2030. It would also let small businesses claim an added credit for keeping those workers in their second through fifth years, at rates of 50% to 100% of capped wages, with lower or no credit for workers with fewer hours. The bill would raise the wage caps with inflation after 2027 and require the Treasury to report to Congress each year from 2027 through 2030 on how the added credit is used.

Full text and official record on Congress.gov

Sponsors

• George Latimer Democrat sponsor
• 4 cosponsors