The American Bankers Association today joined the S Corporation Association and more than 230 associations in support of legislation to make permanent the Section 199A tax deduction for pass-through business income.
The deduction was enacted in 2017 to encourage job creation and new investment by private businesses, and it will expire at the end of this year absent congressional action, according to a joint letter by the associations. Many banks — particularly community banks — are organized as S-corporations.
The Main Street Tax Certainty Act would make the deduction permanent. The bill is expected to be reintroduced Thursday in the Senate by Sen. Steve Daines (R-Mont.) and in the House by Rep. Lloyd Smucker (R-Pa.).
“Pass-through businesses are the backbone of the American economy,” the associations said. “They account for 95% of all businesses and employ 63% of all private sector workers. They also form the economic and social foundation for thousands of communities nationwide. Absent their efforts, those communities would face a future of lower growth, fewer jobs and more boarded-up buildings.”
