What does Preamble of Enhanced Small Business Growth Act of 2026 do?

This bill proposes to amend the Internal Revenue Code of 1986. The stated purpose is to enhance the qualified business income deduction for domestic manufacturers. The bill was introduced in the House of Representatives on May 12, 2026.

What does SHORT TITLE. of Enhanced Small Business Growth Act of 2026 do?

This bill is formally titled the Enhanced Small Business Growth Act of 2026

What does ENHANCED QUALIFIED BUSINESS INCOME DEDUCTION FOR DOMESTIC of Enhanced Small Business Growth Act of 2026 do?

This section amends Section 199A of the Internal Revenue Code of 1986 to create an enhanced Qualified Business Income (QBI) deduction for qualified domestic manufacturers. For qualified domestic manufacturers, subsections (a)(2) and (b)(2)(A) of Section 199A are modified to use '30 percent' instead of '20 percent', and subsection (b)(2)(B)(i) is modified to use '100 percent' instead of '50 percent'. A 'qualified domestic manufacturer' is defined as a taxpayer where at least 85 percent of their combined QBI is derived from a qualified domestic manufacturing trade or business. A 'qualified domestic manufacturing trade or business' involves manufacturing tangible property and having at least 20 percent of the cost of goods sold attributable to labor and overhead expenses within the United States. The definition of 'qualified gross receipts' refers to gross receipts from the lease, rental, license, sale, exchange, or other disposition of tangible property. Section 199A(e)(1) is amended to modify the taxable income computation, excluding regard to sections 68, the deduction under Section 199A, and, if the taxpayer itemizes, deductions under Section 170. These amendments apply to taxable years beginning after December 31, 2025.

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Enhanced Small Business Growth Act of 2026

Last updated: 5/12/2026 · Introduced: 5/12/2026

Author: Carol Miller (R-WV)

TL;DR (AI)

The bill amends the Internal Revenue Code of 1986 to create an enhanced Qualified Business Income deduction for qualified domestic manufacturers.
Qualified domestic manufacturers, defined as taxpayers deriving at least 85 percent of their combined QBI from a qualified domestic manufacturing trade or business, are eligible for the enhanced deduction.
The enhanced deduction modifies the taxable income computation and increases the deduction percentage to 30 percent for qualified domestic manufacturers, applicable to taxable years beginning after December 31, 2025.

119th Congressin committeeOfficial page

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

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