ICBA and other groups expressed support for legislation to make permanent the 20% Section 199A deduction for small and individually owned businesses.
Background: While individually and family-owned businesses organized as pass-throughs account for 95% of all businesses, Section 199A is scheduled to sunset at the end of 2025. The Main Street Tax Certainty Act of 2023 would make the deduction permanent to provide certainty to the millions of S corporations, partnerships, and sole proprietorships that use it.
Joint Letter: In a letter to Sen. Steve Daines (R-Mont.) and Rep. Lloyd Smucker (R-Pa.), ICBA and other groups said making the Section 199A deduction permanent will help Main Street businesses recover from the COVID-19 pandemic and the price hikes, labor shortages, and supply chain disruptions that followed.
Previous Advocacy: ICBA advocated similar legislation during the previous Congress and helped ensure the budget reconciliation bill that passed last year did not include any cap or phaseout of the Section 199A deduction.
