Access to Capital for Entrepreneurs Act of 2006

The Access to Capital for Entrepreneurs Act of 2006 (H.R. 5198) was designed to encourage private investment in small businesses by offering a federal tax incentive to investors. Under this bill, individuals who provided equity funding to small businesses could receive a business tax credit equal to 25% of their investment, up to a maximum of $500,000 per year. The goal of the legislation was to make it easier for entrepreneurs to secure the necessary startup or expansion capital by reducing the financial risk for those willing to invest in local small-scale enterprises.