ICBA-supported legislation to make permanent the Tax Cuts and Jobs Act’s 20 percent deduction for pass-through income was introduced in the Senate. Sen. Steve Daines (R-Mont.) introduced the bill in the Senate following its House introduction by Reps. Jason Smith (R-Mo.) and Henry Cuellar (D-Texas).
ICBA strongly supports making permanent the deduction for shareholders of Subchapter S banks and other pass-through businesses, which is a key provision in ICBA’s Community Focus 2020
policy platform. ICBA joined more than 100 other groups in expressing support for the legislation in a joint letter
to congressional tax writers.
The 20 percent pass-through deduction passed following strong ICBA and community banker advocacy on the tax-reform law, which was signed at the end of 2017. Continued advocacy on Treasury Department implementation of the deduction significantly expanded it under the department’s final rule
issued in January.