PIA Supports Introduction of Bill to Make Small Business Tax Deduction Permanent
PIA issued a statement applauding Reps. Jason Smith (R-MO) and Henry Cuellar (D-TX) and Senator Steve Daines (R-MT) for introducing the “Main Street Tax Certainty Act of 2021,” which would make permanent the 20 percent tax deduction currently available to some passthrough entities.
PIA successfully advocated for the passage of the tax bill signed into law at the end of 2017 because it provided subchapter S corporations, also known as “passthrough” corporations, with more favorable tax treatment. But, unlike the permanent tax relief provided by the law to entities organized as C corporations, the 2017 passthrough deduction was designed to be temporary. As a result, the benefit for eligible PIA members will end on December 31, 2025.
“Small businesses have been devastated due to the economic impact of COVID-19, which had not been felt when the passthrough deduction was passed. As the economic effects of the virus recede, and businesses reopen, Congress must ensure this crucial tax deduction remains available to eligible small businesses,” said Jon Gentile, PIA vice president of government relations. “For PIA, passage of this legislation is a top priority as Congress considers how to support small businesses in the current economic environment and provide certainty going forward.”