We have received text from H.R. 703: Main Street Tax Certainty Act. This bill was received on 2025-01-23, and currently has 175 cosponsors.
Here is a short summary of the bill:
This bill, known as the Main Street Tax Certainty Act, aims to make permanent a tax deduction for qualified business income, which was initially introduced as a temporary measure. Below are the key points of what the bill entails:
1. Purpose of the Bill
The primary goal of the Main Street Tax Certainty Act is to amend the Internal Revenue Code to ensure that the deduction for qualified business income under Section 199A remains in effect indefinitely, rather than being scheduled to expire.
2. Background on Qualified Business Income Deduction
The qualified business income deduction allows eligible taxpayers to deduct a portion of their income from certain pass-through entities, such as partnerships and S corporations. This tax relief was first enacted as part of the Tax Cuts and Jobs Act of 2017 and currently is set to expire after a specified date. The bill seeks to eliminate this expiration date, making the deduction permanent.
3. Key Changes Proposed
- Permanency: The bill proposes to strike the expiration clause from the existing law, ensuring that the deduction will continue to be available for qualified business income in future years.
- Effective Date: The changes made by the bill would apply to taxable years starting after December 31, 2025. This means that the permanence of the deduction would not take effect until the 2026 tax year.
4. Implications for Businesses
By making the deduction permanent, the bill is intended to provide greater tax stability for small businesses and pass-through entities. This could potentially encourage investment and growth within these businesses, as they would have more certainty regarding their tax obligations.
5. Legislative Process
The bill was introduced in the U.S. House of Representatives and referred to the Committee on Ways and Means for further consideration. Further steps in the legislative process will determine if it will become law.
Relevant Companies
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