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HR 2777119th CongressIntroduced
S-CAP Act of 2025
Introduced: Oct 29, 2025
Economy & Taxes
Standard Summary
Comprehensive overview in 1-2 paragraphs
The S-CAP Act of 2025 increases the maximum number of eligible shareholders for S corporations from 100 to 250 under the Internal Revenue Code, effective for taxable years after December 31, 2025, aiming to support business growth and flexibility.
Key Points
- 1Raises the shareholder limit for S corporations from 100 to 250 to allow broader ownership.
- 2Applies the change to taxable years beginning after December 31, 2025.
- 3Seeks to reduce administrative burdens and encourage business expansion through structural reforms.
Impact Areas
S corporationsSmall and growing businessesTax compliance and corporate structuring
Generated by legislative-analysis-v2 on Nov 1, 2025