Tax Bill Introduced to Update S Corporation Regulations
WASHINGTON — U.S. Rep. Dave Reichert (R-Washington) and Rep. Ron Kind (D-Wisconsin) introduced the S Corporation Modernization Act (H.R. 2788) Tuesday afternoon. This proposed bipartisan legislation would give tax relief to the many S corporations among HARDI’s membership by allowing them to have better access to capital and to more easily compete and hire new workers.
“HARDI fully supports this bill,” said HARDI CEO Talbot Gee. “Representatives Reichert and Kind are among the growing members of Congress fighting to bring our country’s outdated tax code into the 21st century. We thank them for their efforts.”
“This is one of several efforts this year by members of the House to update an outdated tax code," said Jon Melchi, vice president of Government Affairs & Business Development, HARDI. "Reps. Reichert and Kind’s bill would see improvements to our tax code that will make it easier for HARDI members to access capital and grow their businesses.”
Specifically, the bill loosens the S corporation regulations on passive income, small business trusts, and IRAs.
In a statement, Rep. Reichert said, “With 1 in 4 workers being employed by these small businesses nationwide, it is absolutely critical that we ensure these businesses have the tools that will promote their growth, not stifle it.”
The bill has been referred to the House Ways and Means Committee.