Election season brings plenty of promises. Some matter more than others—especially when they directly impact your cash flow. Kamala Harris’s proposed tax plan focuses on small business relief, with the kind of credits and incentives that could put real money back in your pocket. But, as with all things tax-related, the key isn’t in waiting to see what happens. It’s in planning for what could.
Let’s unpack the highlights of Harris’s proposal and how smart business owners can get ahead of the curve.
What’s on the Table: Harris’s Small Business Tax Plan
Harris’s platform leans heavily into small business support, with policies designed to reduce tax burdens, simplify filing, and increase access to capital.
$50,000 Small Business Tax Credit
At the heart of her proposal is a potential $50,000 tax credit for small businesses. If implemented, this could offset rising operational costs, from payroll to equipment upgrades, and free up capital for growth initiatives.
Simplified Tax Filing
Harris also proposes streamlining the filing process, making compliance less of a burden—especially for business owners who don’t have the luxury of a full-time finance team. Less time spent on paperwork means more time focusing on the things that actually move the needle.
Access to Capital Incentives
Her plan includes tax incentives for financial institutions that lend to small businesses, particularly in underserved communities. If you’ve struggled to access affordable financing, this could be a game-changer.
The Upside—and the Questions
If you’re running a lean operation, a $50,000 tax credit and simplified compliance could be a welcome relief. Add the possibility of expanded funding opportunities, and there’s real potential here for businesses looking to scale or stabilize.
That said, no tax plan is without its critics. Some argue the credit doesn’t go far enough to address systemic challenges—like inflation and labor shortages—that many business owners are facing right now.
At Nth Degree CPAs, we tend to agree with one key takeaway: the tax code is always evolving. Whether it’s Harris’s plan or a variation that eventually becomes law, you’ll want a strategy in place that helps you pivot quickly.
What Business Owners Should Do Next
Rather than speculating on outcomes, start thinking through how your business can leverage these opportunities. Here’s where to focus:
1. Prepare to Maximize Any Available Credits
If Harris’s $50,000 tax credit comes through, you’ll want to ensure your business is eligible and prepared to claim it. That starts with proactive documentation and working closely with your CPA (hi, that’s us).
2. Simplify Your Compliance Processes Now
Even if filing does become easier, laying the groundwork now—streamlining expense tracking, organizing your books—means you’ll benefit sooner. Think of it as spring cleaning for your financials.
3. Explore New Financing Channels
With potential incentives driving more capital into small business lending, this is the time to strengthen your financial profile. Get ahead of the game by reviewing your balance sheet and preparing for conversations with lenders.
Harris’s tax plan presents opportunities for small business owners willing to think ahead. Whether it’s in the form of meaningful tax credits or easier access to capital, there’s potential here to lower your tax burden and improve your bottom line.
Want to get ahead of potential tax changes?
Schedule a consultation with Nth Degree CPAs today.
