U.S. Sen. Steve Daines (R-MT) has introduced legislation to make the small business tax deduction permanent, a measure that has gained the support of more than 100 business groups.
The Main Street Tax Certainty Act, S. 1149, would make the small business tax deduction included in the Tax Cuts and Jobs Act of 2017 permanent. Specifically, the Section 199A 20 percent qualified business income deduction is now set to expire at the end of 2025.
“I championed the effort to make sure small businesses in Montana are on equal tax footing as corporations. Now, we must make this level playing field permanent to protect and grow Montana jobs,” Sen. Daines said.
Daines introduced S. 1149 on April 11 with U.S. Sens. Pat Roberts (R-KS) and John Thune (R-SD). The bill is currently under consideration by the Senate Finance Committee.
More than 100 business groups, including the National Federation of Independent Business and the U.S. Chamber of Commerce, recently sent a letter in support of the legislation, which they said would help ensure permanent tax relief for the millions of employers organized as S corporations, partnerships and sole proprietorships.
“These Main Street employers are the backbone of the American economy — they employ the majority of U.S. workers and represent 95 percent of all businesses,” the letter said.
Brian Reardon, president of the S Corporation Association, praised Sen. Daines’ work on the bill.
“Senator Daines stood up for Main Street during tax reform and he’s doing it again. Making the 199A deduction permanent is essential to the success of Main Street businesses in Montana and nationwide,” Reardon said. “It means increased investment, more jobs and higher wages.”