Main Street Tax Certainty Act

Senate Bill

S. 213

119th Congress

Main Street Tax Certainty Act

In Committee

Introduced:Jan 23, 2025

Primary Sponsor

Steve Daines

Senator

Republican

MT

Cosponsors

45

Quick Stats

Policy Area

Taxation

Summary

This bill makes permanent the qualified business income (QBI) tax deduction, which is currently set to expire after December 31, 2025. The QBI deduction allows individuals, estates, and trusts to deduct up to 20% of qualified business income from pass-through entities like S corporations, partnerships, and sole proprietorships, subject to certain limitations. Without this legislation, the deduction would automatically sunset.

Latest Action

Read twice and referred to the Committee on Finance.

AI Summary

Plain-English explanation of this bill

This bill makes permanent the qualified business income (QBI) tax deduction, which is currently set to expire after December 31, 2025. The QBI deduction allows individuals, estates, and trusts to deduct up to 20% of qualified business income from pass-through entities like S corporations, partnerships, and sole proprietorships, subject to certain limitations. Without this legislation, the deduction would automatically sunset.

Last updated: 1/4/2026

Official Summary

Congressional Research Service summary

Main Street Tax Certainty Act This bill makes permanent the qualified business income (QBI) tax deduction.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.)However, under current law, the QBI tax deduction expires after December 31, 2025.

Key Points

Main provisions of the bill

Makes permanent the 20% qualified business income deduction
Prevents expiration scheduled for December 31, 2025
Benefits pass-through businesses: S corps, partnerships, sole proprietors
Applies to individuals, estates, and trusts
Includes REIT dividends and publicly traded partnership income

How This Impacts Americans

Potential effects on citizens and communities

The QBI deduction was a major component of the 2017 tax reform and provides significant tax relief to small and medium-sized businesses structured as pass-through entities. Making it permanent provides long-term certainty for business planning and investment decisions. The bill addresses concerns that small businesses would face substantial tax increases when the deduction expires.

Policy Areas

Primary Policy Area

Taxation

Scope & Jurisdiction

Jurisdiction Level

federal

Congressional Session

119th Congress

Citation Reference

213, 119th Congress (2025). "Main Street Tax Certainty Act". Source: Voter's Right Platform. https://votersright.org/bills/118-s-213