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Increased Tax Deduction for Small Businesses and Lower-Income Individuals

This bill aims to increase the tax deduction for small business owners and self-employed individuals whose annual taxable income does not exceed $100,000. This means these individuals will be able to deduct a larger portion of their business income, potentially leading to lower tax payments. These changes will apply to taxable years beginning after the act's enactment, with the income threshold adjusted annually for inflation.
Key points
Increases the qualified business income deduction from 20% to 25%.
Applies to taxpayers with taxable income not exceeding $100,000.
The income threshold will be adjusted annually for inflation starting in 2023.
Changes take effect for taxable years beginning after the act's enactment.
article Official text account_balance Process page
Expired
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Additional Information
Print number: 117_HR_3725
Sponsor: Rep. Newman, Marie [D-IL-3]
Process start date: 2021-06-04
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

REST Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_3725.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2021-06-04.

What are the main provisions?

Key points include:

  • Increases the qualified business income deduction from 20% to 25%.
  • Applies to taxpayers with taxable income not exceeding $100,000.
  • The income threshold will be adjusted annually for inflation starting in 2023.
  • Changes take effect for taxable years beginning after the act's enactment.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Newman, Marie [D-IL-3].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-28.

CATEGORIES

Taxes Economy