1. Short title This Act may be cited as the Small Business Emergency Savings Accounts Act of 2023 . 2. Deduction for contributions to small business emergency savings accounts (a) In general Part VI of subchapter B of chapter 1 of the Internal Revenue Code of 1986 (relating to itemized deductions for individuals and corporations) is amended by adding at the end the following new section: 200. Small business emergency savings accounts (a) Deduction allowed In the case of a eligible business, there shall be allowed as a deduction for the taxable year an amount equal to the aggregate amount paid during such taxable year by such business to a small business emergency savings account of such business. (b) Limitation The amount allowed as a deduction under subsection (a) to any business for any taxable year shall not exceed the lesser of— (1) 25 percent of the wages (as defined in section 3121(a)) paid by the eligible business during such taxable year, or (2) the greater of— (A) zero, or (B) the maximum amount which when added to the balance of such account (as determined at the end of such taxable year but without regard to contributions made during such taxable year) would not result in such balance (as so determined) to exceed 150 percent of wages (as defined in section 3121(a)) paid by the eligible business during such taxable year. (c) Eligible business For purposes of this section, the term eligible business means any person if— (1) such person carries on any trade or business in the United States (other than the trade or business of being an employee), and (2) the average number of full-time employees (as determined for purposes of determining whether an employer is an applicable large employer for purposes of section 4980H(c)(2)) employed by such employer during the taxable year does not exceed 500. (d) Small business emergency savings account For purposes of this section— (1) In general The term small business emergency savings account means a trust created or organized in the United States as a small