Referred to the House Committee on Ways and Means.
This bill amends Internal Revenue Code section 1361(b)(1)(A) to raise the maximum number of shareholders permitted for S corporation status from 100 to 250.
The change applies to taxable years beginning after December 31, 2025.
No other substantive changes are made in the text provided.
Narrow, administrable tax tweak with bipartisan appeal but nontrivial fiscal score and no offsets make standalone enactment moderately uncertain.
Relative to its intended legislative type, this bill is a narrowly focused statutory amendment that is clear and precise about the legal change (increasing the S-corporation shareholder limit from 100 to 250) and the effective date.
Liberals emphasize revenue loss and potential tax avoidance.
Liberals emphasize revenue loss and potential tax avoidance.
Likely skeptical.
Supporters would note small-business flexibility, but many progressives will worry about revenue loss and advantaging higher-income owners.
Some will seek limits or offsets to protect public programs.
Cautiously receptive.
The change seems pro-growth for small businesses, but centrists will want fiscal impact analysis and guardrails to prevent unintended exploitation.
Support likely contingent on offsets or studies.
Generally supportive.
Seen as pro–small business tax relief that reduces double taxation and helps firms grow.
Conservatives will emphasize limited government interference and permanent relief.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Narrow, administrable tax tweak with bipartisan appeal but nontrivial fiscal score and no offsets make standalone enactment moderately uncertain.
The bill has not accumulated any surfaced votes yet.
Liberals emphasize revenue loss and potential tax avoidance.
Narrow, administrable tax tweak with bipartisan appeal but nontrivial fiscal score and no offsets make standalone enactment moderately unce…
Relative to its intended legislative type, this bill is a narrowly focused statutory amendment that is clear and precise about the legal change (increasing the S-corporation shareholder limit from 100 to 250) and the ef…
Go beyond the headline summary with full stakeholder mapping, legislative design analysis, passage barriers, and lens-by-lens tradeoff breakdowns.