|
119th CONGRESS
1st Session |
To amend the Internal Revenue Code of 1986 to increase the number of eligible shareholders of an S corporation.
Mr. Hill of Arkansas (for himself and Mr. Carey) introduced the following bill; which was referred to the Committee on Ways and Means
To amend the Internal Revenue Code of 1986 to increase the number of eligible shareholders of an S corporation.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
This Act may be cited as the “S-Corporation Additional Participation Act of 2025” or the “S-CAP Act of 2025”.
SEC. 2. Increase in number of shareholders to qualify as an S corporation.
(a) In general.—Section 1361(b)(1)(A) of the Internal Revenue Code of 1986 is amended by striking “100” and inserting “250”.
(b) Effective date.—The amendment made by this section shall apply to taxable years beginning after December 31, 2025.