Main Street Tax Certainty Act
Main Street Tax Certainty Act
Plain Language Summary
# Main Street Tax Certainty Act Summary **What the bill would do:** This bill would make permanent a tax break for business owners and investors that is currently set to expire at the end of 2025. Specifically, it would allow individuals who own businesses (including sole proprietors, partnerships, and S-corporations) to deduct up to 20% of their qualified business income from their taxes.
Without this bill, this deduction disappears after 2025, which would increase taxes for affected business owners. **Who it affects:** The bill primarily benefits small and mid-sized business owners, self-employed individuals, and investors who receive income from businesses, real estate investment trusts, and certain partnerships. It does not apply to large corporations that pay the standard corporate tax rate. **Current status:** The bill was introduced by Senator Steve Daines (R-MT) in the 119th Congress and is currently in committee, meaning it has not yet been voted on by the full Senate.
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
Read twice and referred to the Committee on Finance.