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Small Business Tax Relief: New Income Deduction Rules

This act modifies how the qualified business income deduction is calculated for small businesses and sole proprietors. The aim is to simplify tax rules and potentially reduce tax burdens for many entrepreneurs. These changes could affect the amount of income tax you pay if you operate your own business.
Key points
Establishes a flat $25,000 deduction for qualified business income, removing previous percentage-based limits.
Sets an adjusted gross income limit of $200,000 ($400,000 for joint filers) above which the deduction will be reduced.
Simplifies deduction rules by eliminating complex calculations related to W-2 wages and loss carryovers.
The changes will apply to tax years beginning after December 31, 2025.
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Status: Introduced
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Additional Information
Print number: 119_HR_3249
Sponsor: Rep. Moore, Gwen [D-WI-4]
Process start date: 2025-05-07
System Note: Lustra is free, publicly auditable civic infrastructure — full source code available on GitHub. You are reading sterilized legislative data, processed by our radical neutrality engine to strip political spin and retain factual mechanics. We process only official government data. Original documents remain the authoritative source—always verify them if you can.
Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Mom and Pop Tax Relief Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_3249.

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 2025-05-07.

What are the main provisions?

Key points include:

  • Establishes a flat $25,000 deduction for qualified business income, removing previous percentage-based limits.
  • Sets an adjusted gross income limit of $200,000 ($400,000 for joint filers) above which the deduction will be reduced.
  • Simplifies deduction rules by eliminating complex calculations related to W-2 wages and loss carryovers.
  • The changes will apply to tax years beginning after December 31, 2025.
What is the specific legal status?

The current status is Introduced.

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. Moore, Gwen [D-WI-4].

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 2025-12-22.

What is the impact of this bill?

We don't know—that is up to you to decide. Summarizing raw data with AI is fundamentally different from predicting socio-economic outcomes. As of 2026, we believe impact assessment strictly requires a human in the loop to verify and judge.

CATEGORIES

Taxes Economy