Growing Small Businesses Act

This bill amends the Internal Revenue Code to allow a tax credit for investments in a small business's first qualifying production facility.

The credit is equal to 25% of the cost of property for an eligible employer's first qualifying production facility placed in service during the year. The credit applies to employers who: (1) have no more than 50 full-time equivalent employees, and (2) have not previously placed in service a dedicated facility for the production of goods for sale.

A "qualifying production facility" must be used to produce any of the following products:

• tangible personal property,
• computer software,
• films and videotape,
• sound recordings, or
• food and beverages which are prepared by the taxpayer but not primarily for consumption at property owned by the taxpayer.

Qualifying employers may elect to apply up to $250,000 of the credit against payroll taxes.