FOR IMMEDIATE RELEASE
ICBA Commends Senate Passage of Subchapter S Tax Relief
Legislation Benefits Small Businesses and Their Customers
Washington, D.C. (February 2, 2007)—The Independent Community Bankers of America (ICBA) today praised the Senate for passing ICBA-backed Subchapter S tax reforms that will benefit small businesses and community banks. Nearly one-third of all U.S. banks, some 2,400, have elected S Corporation status.
"The Senate bill contains provisions that will ease the tax burden of millions of small businesses and community banks across the country," said Camden R. Fine, ICBA president and CEO. "Subchapter S status is a proven means for small businesses such as community banks to improve their viability, allowing them to better serve their customers and their communities."
Key ICBA-backed Subchapter S reforms in the Senate tax package include:
- Excluding capital gains from passive investment income;
- Improving the treatment of bank director shares;
- Improving the tax treatment for bad debt reserves;
- Reforming the treatment of sale of interest in a qualified Subchapter S subsidiary; and
- Expanding eligible beneficiaries of an electing small business trust.
ICBA appreciates the strong bipartisan efforts by Senate Finance Committee Chairman Max Baucus (D-MT), Ranking Minority Member Charles Grassley (R-IA) and Sens. Orrin Hatch (R-UT) and Blanche Lincoln (D-AR) to reduce the tax burden on small businesses by passing ICBA-supported S Corporation reforms.
"ICBA looks forward to seeing this important legislation passed by the full Congress and signed into law," added Fine.