The Main Street Tax Certainty Act (S.1706/H.R.4721) would make permanent Section 199A, a key tax deduction which as of now will sunset at the end of this year. Section 199A allows individually- and family-owned businesses organized as pass-throughs (S corporations, partnerships, and sole proprietorships) to take a 20% tax deduction on their qualified business income.
Qualified business income is the net amount of qualified items of income, gain, deduction and loss with respect to any trade or business, excluding capital gains or losses, dividends, interest income, or income earned outside the U.S.
More than 98% of AAPL’s membership are small businesses owned and operated by entrepreneurs. They rely on pass-through entities, including operating companies, funds, SPVs, and holding companies. Further, Section 199A’s REIT deduction has been paramount to capital formation for balance sheet lenders.
Business-purpose borrowers, private investors, and many ancillary professional and operational services also use Section 199A to maintain competitiveness. The sunset of this significant tax deduction will negatively impact not only those operating within our industry, but also the worthy projects private lenders make possible: rehabilitation of our nation’s distressed housing stock, new construction, and community commercial development.
Making Section 199A a permanent part of our nation’s tax code will be a breath of relief and step toward much-needed stability at a time when our nation’s small businesses continue to navigate market disruption and cost volatility.
AAPL has submitted letters to the Act’s sponsors, Senator Steve Daines and Representative Lloyd Smucker to encourage passage of the bill.
Support 199A Today
- Download and customize this Sample Letter [Microsoft Word Document]
- Submit it to:
- Your Members in Congress (find your Senators and Representatives here)
- Bill Sponsors – S.1706 Senator Steve Daines (R/MT) and H.R.4721 Representative Lloyd Smucke (R/PA)
- Bill Co-Sponsors – S.1706 (34) and H.R.4721 (194)
AAPL will remain focused on this bill as it progresses. If you have any questions regarding this issue or Geraci LLP’s involvement on behalf of AAPL as our General Counsel, please contact Kevin Kim at k.kim@geracillp.com.
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