S.Amdt. 2608

As an analyst looking out for the people, let's break down what this amendment from Mr. Luján actually does. The text proposes to strike section 70105 and replace it with changes regarding the 199A deduction.

The amendment aims to change or add the following items to the bill:

• It allows a deduction for the first $25,000 of qualified business income.
• It sets an adjusted gross income limitation where the combined qualified business income of the taxpayer is reduced by the amount the taxpayer's adjusted gross income exceeds $200,000, or $400,000 in the case of a joint return.
• It makes changes regarding loss carryovers, W-2 wages, and various conforming amendments.
• It defines a qualified trade or business as any trade or business other than the trade or business of performing services as an employee.
• It applies these changes to taxable years beginning after December 31, 2025.