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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.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_3249
Sponsor: Rep. Moore, Gwen [D-WI-4]
Process start date: 2025-05-07
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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

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.

CATEGORIES

Taxes Economy