ABA Supports Bill to Make 199A Tax Deduction Permanent for S-Corps

The American Bankers Association today joined more than 100 trade organizations in a letter of support for H.R. 216, the Main Street Tax Certainty Act of 2019—a bipartisan bill introduced by Reps. Jason Smith (R-Mo.) and Henry Cuellar (D-Texas) in the House. The bill would make permanent a provision of the 2017 tax reform law enacting a 20 percent deduction for certain qualified business income received from pass-through entities such as partnerships or businesses operating under a Subchapter S election. A companion bill was introduced by Sen. Steve Daines (R-Mont.)

“Despite the economic importance of the pass-through sector, the Section 199A deduction is scheduled to sunset at the end of 2025,” the groups wrote. “Repealing this sunset will benefit millions of pass-through businesses, leading to higher economic growth and more employment.”