State Senator Doris Turner is backing a measure aimed at supporting small businesses by setting aside reinvestment funds for capital expenses such as building improvements, equipment and technology.

Turner says small businesses play a key role in local communities by strengthening economies and providing services, and that giving business owners the right tools can help them grow and succeed.

Under Senate Bill 3614, the proposal would create a Small Business Asset Purchase Account, allowing business owners to deposit reinvestment funds. The measure would provide a 50% income tax deduction in the year funds are contributed and another 50% deduction when the funds are withdrawn.

The legislation is designed to give small-business owners more flexibility to reinvest earnings when needed, rather than being limited by the tax calendar, while also helping reduce financing costs.
Senate Bill 3614 was heard Thursday in the Senate Revenue Committee.