“Main Street Tax Certainty Act” Introduction in the U.S. Senate

May 17, 2023

This legislation will make the Small Business Deduction permanent

“Main Street Tax Certainty Act” Introduction in the U.S. Senate

The Main Street Tax Certainty Act is expected to be introduced in the U.S. Senate this week. Senator Steve Daines (R-MT) will re-introduce the important legislation, which will make the Small Business Deduction permanent. Currently, the deduction is set to expire after 2025. Rep. Jason Smith (R-MO), who has long championed making the Small Business Deduction permanent, is anticipated to re-introduce the legislation in the House soon as well. “As small businesses manage economic headwinds, Congress has the opportunity to pass legislation that would provide tax certainty for Main Street by making the Small Business Deduction permanent,” said Brad Close, NFIB President. “Unlike the corporate rate, the Small Business Deduction is set to expire in 2025 and its elimination would cause small businesses to curtail their hiring and growth plans. We are encouraged that Senator Steve Daines re-introduced the Main Street Tax Certainty Act in the Senate and urge members of the U.S. House to quickly follow.” The Small Business Deduction (Section 199A) allows pass-through entities like Sole Proprietorships, S-Corporations, Partnerships, or LLCs to deduct up to 20% of qualified business income and is scheduled to expire at the end of 2025. Small businesses across the nation have benefited from this tax deduction, using the funds from their deduction to invest in employees, benefits, and their businesses and the Main Street Tax Certainty Act makes this critical tax deduction permanent. According to NFIB’s Problems and Priorities survey, small business owners rank taxes and tax-related issues as a top concern for their business. In a tax survey, nearly half of respondents (48%) reported the uncertainty of expiring tax provisions is impacting their current or future business plans. “Montana small business owners thank Senator Daines for re-introducing this crucial legislation in the U.S. Senate,” said Ronda Wiggers, NFIB Montana State Director. “The Small Business Deduction has allowed owners to reinvest in their businesses and employees. We urge Congress to pass the Main Street Tax Certainty Act and make the deduction permanent.” For small business owners unsure if they qualify for this deduction, NFIB has a simple flowchart to help determine if your small business is benefiting from the deduction. As Congress continues to consider changes to tax policy, it is important to show lawmakers how the Small Business Deduction makes a big difference for small businesses, their communities, and their employees. Urge your Senators to support this crucial legislation.

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Topics:

Taxes

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