Main Street Tax Certainty Act
The Main Street Tax Certainty Act would make permanent the deduction for qualified business income (QBI) provided under Section 199A of the Internal Revenue Code. The bill does this by striking subsection (i) of Section 199A, which currently governs the sunset or expiration of the deduction. In effect, if enacted, the 20% QBI deduction for certain pass-through businesses would no longer expire after 2025 and would continue indefinitely under current rules (subject to existing limitations such as wages, UBIA/property, and other qualification rules). The bill does not alter the fundamental mechanics of the deduction beyond removing the sunset. The legislation is a relatively straightforward policy choice aimed at providing long-term certainty for small-business owners, self-employed individuals, and other taxpayers who benefit from the QBI deduction. It would not add new credits or tax breaks beyond extending the expiration date; it would, however, affect federal revenue by preserving a revenue-forecasted tax expenditure for an indefinite period.
Key Points
- 1Makes permanent the deduction for qualified business income (QBI) by striking subsection (i) of Section 199A of the Internal Revenue Code.
- 2Effectively removes the sunset that otherwise would cause the QBI deduction to expire after 2025.
- 3Applies to owners of pass-through businesses (e.g., sole proprietors, partnerships, S corporations) who otherwise qualify for the QBI deduction, while leaving existing limitations (such as wage and UBIA/property tests) in place.
- 4Simple statutory change: the bill is a change to the tax code via a one-line amendment to 199A.
- 5Status and process: introduced in the Senate by Senator Daines with a long list of cosponsors; referred to the Committee on Finance.