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Small Business Tax Relief and Carried Interest Reform

This Act amends the Internal Revenue Code to lower the corporate tax rate for small businesses with taxable income not exceeding $5,000,000. It reclassifies net capital gain from investment services partnership interests (carried interest) as ordinary income. Additionally, it increases the deduction for self-employment taxes for individuals with adjusted gross income under $400,000 and raises the excise tax on corporate stock repurchases.
Key points
Corporate Tax Cut: Corporations with taxable income up to $5 million will pay 18% on the first $400,000 of income (down from 21%).
Carried Interest Reform: Net capital gains from investment management services will be treated as ordinary income.
Enhanced Deduction for Self-Employed: Individuals with income below $400,000 can deduct 75% (up from 50%) of their self-employment taxes.
Increased Stock Buyback Tax: The excise tax on corporate stock repurchases increases from 1% to 1.5%.
Self-Employment Earnings: Income from investment services partnership interests will be included in net earnings from self-employment.
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Introduced
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Additional Information
Print number: 119_HR_3275
Sponsor: Rep. Craig, Angie [D-MN-2]
Process start date: 2025-05-08
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Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Small Business Tax Relief Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_3275.

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 2025-05-08.

What are the main provisions?

Key points include:

  • Corporate Tax Cut: Corporations with taxable income up to $5 million will pay 18% on the first $400,000 of income (down from 21%).
  • Carried Interest Reform: Net capital gains from investment management services will be treated as ordinary income.
  • Enhanced Deduction for Self-Employed: Individuals with income below $400,000 can deduct 75% (up from 50%) of their self-employment taxes.
  • Increased Stock Buyback Tax: The excise tax on corporate stock repurchases increases from 1% to 1.5%.
  • Self-Employment Earnings: Income from investment services partnership interests will be included in net earnings from self-employment.
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. Craig, Angie [D-MN-2].

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 2025-12-24.

CATEGORIES

Taxes Economy