Bill · H.R. 2777· House(119-HR-2777)

S-CAP Act of 2025

Age: 70 years

Arkansas

Introduced: 4/9/2025
Last activity: 4/9/2025 — Referred to the House Committee on Ways and Means.
Sponsored by: J. Hill
Cosponsors: - 17 - 2

Taxation

Introduced
In Committee

What this bill would do

This bill, titled the "S-Corporation Additional Participation Act of 2025," aims to amend the Internal Revenue Code of 1986. The primary purpose is to increase the number of eligible shareholders allowed for an S corporation. Specifically, it seeks to change the limit of shareholders from 100 to 250. This change would take effect for taxable years beginning after December 31, 2025.

Yes· 3 of 8

Does this make it easier to run a small business?+5
The bill directly supports small businesses by easing ownership restrictions for S-corporations.
Would business owners be better off under this?+5
Business owners gain significant flexibility in growing their shareholder base.
Does this cut taxes for small businesses?+3
The bill provides flexibility for small businesses by allowing a larger pool of eligible shareholders under the S-corp tax structure.