Main Street Tax Certainty Act
Main Street Tax Certainty Act
Plain Language Summary
# Main Street Tax Certainty Act Summary **What the bill does:** This bill would make permanent a tax deduction for small business owners and certain investors. Currently, owners of small businesses, partnerships, and real estate investment trusts can deduct up to 20% of their qualified business income from their taxes—but this deduction is set to expire at the end of 2025. The bill would keep this deduction in place indefinitely instead of letting it expire. **Who it affects:** The main beneficiaries would be small business owners, self-employed individuals, and investors in certain business structures. The deduction is available to individuals, estates, and trusts with qualifying business income.
Large corporations are not eligible for this particular deduction. **Current status:** The bill is currently in committee in the House of Representatives, meaning it has been introduced but has not yet been debated or voted on by the full chamber. The bill was sponsored by Rep. Lloyd Smucker (R-PA).
CRS Official Summary
Main Street Tax Certainty Act This bill makes permanent the qualified business income (QBI) tax deduction.Under current law, individuals, estates, and trusts may deduct the lower of (1) 20% of QBI from a qualified business, qualified real estate investment trust dividends, and qualified publicly traded partnership income; or (2) 20% of taxable income less net capital gain. (Some limitations apply.)However, under current law, the QBI tax deduction expires after December 31, 2025.
Latest Action
Referred to the House Committee on Ways and Means.