Small Business and Consumer Credit Act of 2026

Key Points

• This bill changes tax rules for local and community banks that lose money in a year. It allows them to use those losses to get refunds on taxes they paid in the past. This provides them with extra cash when they need it most.
• Starting in 2028, banks could get refunds for the previous year's taxes. By 2029, they could look back two years. This helps banks stay in business and keep their doors open during a recession or financial crisis.
• The plan is meant to help small businesses and families. When local banks have more cash, they can keep providing loans for homes and small companies even when the economy is doing poorly.
• The rules only apply to specific types of banks, mostly smaller ones that are not part of huge national financial groups. This helps local lenders compete with the biggest banks in the country.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.