HR 703119th CongressIn Committee

Main Street Tax Certainty Act

Introduced: Jan 23, 2025

Standard Summary

Comprehensive overview in 1-2 paragraphs

The Main Street Tax Certainty Act would make permanent the qualified business income (QBI) deduction created under Section 199A of the Internal Revenue Code. By striking subsection (i) of Section 199A, the bill removes the sunset that would cause the deduction to lapse after 2025, ensuring that eligible taxpayers can continue to claim the QBI deduction going forward. The change would apply to taxable years beginning after December 31, 2025 (i.e., starting with the 2026 tax year). The bill preserves the existing structure of Sec. 199A; it does not redefine or expand the deduction beyond removing the sunset.

Key Points

1What it does: Permanently preserves the QBI deduction under Section 199A by eliminating the sunset provision (striking subsection (i)).
2Effective date: Applies to taxable years beginning after December 31, 2025 (starting with 2026).
3Scope remains the same: Keeps the current mechanics of the QBI deduction (including that it is generally available to eligible pass-through businesses and certain individuals) without changing other rules or limitations that apply to Sec. 199A.
4Legislative status: Introduced in the House and referred to the Ways and Means Committee; sponsor list included in the bill text.
5Financial/delivery implications: Removes the planned expiration of the deduction, which implies a long-term, ongoing tax relief for affected taxpayers and a corresponding effect on federal revenue, subject to future fiscal estimates.

Impact Areas

Primary group/area affected: Small business owners and professionals operating through pass-through entities (such as sole proprietorships, partnerships, and S-corporations) who benefit from the QBI deduction.Secondary group/area affected: Individual taxpayers who may claim the QBI deduction, tax preparers, and tax policy analysts focused on business income relief.Additional impacts: Provides greater certainty for long-term tax planning for businesses; potential longer-term federal revenue impact due to the permanent extension of the deduction; considerations for budget and legislative forecasting.

Generated by gpt-5-nano on Nov 18, 2025