Senate Bill Would Make Sub S Deduction Permanent

Apr 12, 2019
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.
2019 National Community Bank Service Awards