WASHINGTON, D.C. — Heating, Air-conditioning & Refrigeration Distributors International (HARDI) has applauded bipartisan and bicameral legislation recently introduced to Congress regarding S corporation rule updates.

“Upward of 65 percent of HARDI’s wholesale distributor members are pass-through entities,” said HARDI Vice President of Government Affairs Jon Melchi. “This is such an encouraging piece of bipartisan legislation amid all the polarizing rhetoric coming out of Washington. The S Corporation Modernization Act will bring this important issue to the table as Congress heads into tax reform deliberations in the coming months.”

Sens. John Thune (R-South Dakota) and Ben Cardin (D-Maryland) are cosponsoring the Senate bill, S. 711, and Reps. Dave Reichert (R-Washington) and Ron Kind (D-Wisconsin) are cosponsoring the House version, H.R. 1696.

There are more than 4.5 million S corporations nationwide. They are in every community and every industry, and they employ one out of every four private sector workers.

The S Corporation Modernization Act would ensure the continued success of these businesses by:

• Increasing their access to capital by reducing S corporation ownership restrictions;
• Easing punitive restrictions that apply to converted S corporations and punish the unwary; and
• Leveling the rules of S corporations and partnerships when their assets are passed on from one generation to the next.

For more information, please contact Anthony Lagunzad at alagunzad@hardinet.org.