What does Preamble of S-CAP Act of 2025 do?

This bill proposes to amend the Internal Revenue Code of 1986. The stated purpose is to increase the number of eligible shareholders of an S corporation.

What does SHORT TITLE. of S-CAP Act of 2025 do?

This bill is formally titled the S-Corporation Additional Participation Act of 2025.

What does INCREASE IN NUMBER OF SHAREHOLDERS TO QUALIFY AS AN S of S-CAP Act of 2025 do?

This section amends Section 1361(b)(1)(A) of the Internal Revenue Code of 1986. The amendment increases the number of shareholders required to qualify as an S corporation from 100 to 250. The amendment applies to taxable years beginning after December 31, 2025.

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S-CAP Act of 2025

Last updated: 4/9/2025 · Introduced: 4/9/2025

Author: J. Hill (R-AR)

TL;DR (AI)

The bill raises the shareholder limit for S corporations from 100 to 250.
This change applies to tax years beginning after December 31, 2025.
The bill amends the Internal Revenue Code of 1986 to facilitate this increase in eligible shareholders.

119th Congressin committeeOfficial page

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Other Sections

Includes provisions on preamble, short title., and 1 more.

3 sections

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