The Main Street Tax Certainty Act makes permanent the qualified business income deduction, which allows pass-through businesses to deduct up to 20 percent of their business income. Without this bill, the deduction expires after December 31, 2025.
Latest Action
Referred to the House Committee on Ways and Means.
AI Summary
Plain-English explanation of this bill
The Main Street Tax Certainty Act makes permanent the qualified business income deduction, which allows pass-through businesses to deduct up to 20 percent of their business income. Without this bill, the deduction expires after December 31, 2025.
Last updated: 1/5/2026
Official Summary
Congressional Research Service summary
<p><strong>Main Street Tax Certainty Act </strong></p><p>This bill makes permanent the qualified business income (QBI) tax deduction.</p><p>Under current law, individuals, estates, and trusts may deduct the lower of (1) 20% of QBI from a qualified business, qualified real estate investment trust dividends, and qualified publicly traded partnership income; or (2) 20% of taxable income less net capital gain. (Some limitations apply.)</p><p>However, under current law, the QBI tax deduction expires after December 31, 2025. </p>
Key Points
Main provisions of the bill
Makes QBI deduction permanent
Preserves 20 percent business income deduction
Prevents expiration after 2025
Benefits pass-through businesses
Applies to individuals, estates, and trusts
How This Impacts Americans
Potential effects on citizens and communities
Small and medium business owners would have tax certainty beyond 2025. Pass-through entities like LLCs and S-corps would maintain the deduction permanently. Main Street businesses could plan long-term with stable tax treatment.
Policy Areas
Primary Policy Area
Taxation
Scope & Jurisdiction
Jurisdiction Level
federal
Congressional Session
119th Congress
Citation Reference
703, 119th Congress (2025). "Main Street Tax Certainty Act". Source: Voter's Right Platform. https://votersright.org/bills/118-hr-703
