Us Congress 2023-2024 Regular Session

Us Congress House Bill HB108 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	I
2	2	118THCONGRESS
3	3	1
4	4	STSESSION H. R. 108
5	5	To amend the Internal Revenue Code of 1986 to expand the deduction
6	6	for qualified business income, and for other purposes.
7	7	IN THE HOUSE OF REPRESENTATIVES
8	8	JANUARY9, 2023
9	9	Mr. B
10	10	IGGSintroduced the following bill; which was referred to the Committee
11	11	on Ways and Means
12	12	A BILL
13	13	To amend the Internal Revenue Code of 1986 to expand
14	14	the deduction for qualified business income, and for other
15	15	purposes.
16	16	Be it enacted by the Senate and House of Representa-1
17	17	tives of the United States of America in Congress assembled, 2
18	18	SECTION 1. SHORT TITLE. 3
19	19	This Act may be cited as the ‘‘Small Business Pros-4
20	20	perity Act of 2023’’. 5
21	21	SEC. 2. INCREASE AND EXPANSION OF DEDUCTION FOR 6
22	22	QUALIFIED BUSINESS INCOME. 7
23	23	(a) D
24	24	EDUCTIONMADEPERMANENT.—Section 199A 8
25	25	of the Internal Revenue Code of 1986 is amended by strik-9
26	26	ing subsection (i). 10
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29	29	•HR 108 IH
30	30	(b) DEDUCTIONTOACHIEVE ATOPRATE ON 1
31	31	Q
32	32	UALIFIEDBUSINESSINCOME OF21 PERCENT.—Sub-2
33	33	sections (a)(2) and (b)(1)(B) of section 199A of such Code 3
34	34	are each amended by striking ‘‘20 percent’’ and inserting 4
35	35	‘‘43 percent (47 percent in the case of any taxable year 5
36	36	beginning after December 31, 2025)’’. 6
37	37	(c) R
38	38	EPEAL OFLIMITATIONBASED ONW–2 WAGES 7
39	39	P
40	40	AIDWITHRESPECT TO THETRADE ORBUSINESS, TOP 8
41	41	R
42	42	ATE ON QUALIFIEDBUSINESSINCOME.—Section 9
43	43	199A(b)(2) of such Code is amended to read as follows: 10
44	44	‘‘(2) D
45	45	ETERMINATION OF DEDUCTIBLE 11
46	46	AMOUNT FOR EACH TRADE OR BUSINESS .—The 12
47	47	amount determined under this paragraph with re-13
48	48	spect to any qualified trade or business is 43 percent 14
49	49	(47 percent in the case of any taxable year begin-15
50	50	ning after December 31, 2025) of the taxpayer’s 16
51	51	qualified business income with respect to the quali-17
52	52	fied trade or business.’’. 18
53	53	(d) R
54	54	EPEAL OFEXCLUSION OFSPECIFIEDSERVICE 19
55	55	T
56	56	RADES ORBUSINESSES.—Section 199A(d) of such Code 20
57	57	is amended to read as follows: 21
58	58	‘‘(d) Q
59	59	UALIFIEDTRADE ORBUSINESS.—For pur-22
60	60	poses of this section, the term ‘qualified trade or business’ 23
61	61	means any trade or business other than the trade or busi-24
62	62	ness of performing services as an employee.’’. 25
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65	65	•HR 108 IH
66	66	(e) CONFORMINGAMENDMENTS.— 1
67	67	(1) Section 199A(b) of such Code is amended— 2
68	68	(A) by striking paragraphs (3), (4), and 3
69	69	(6), and redesignating paragraphs (5) and (7) 4
70	70	as paragraphs (3) and (4), respectively, and 5
71	71	(B) by striking ‘‘the lesser of—’’ and all 6
72	72	that follows in paragraph (4) (as so redesig-7
73	73	nated) and inserting ‘‘9 percent of so much of 8
74	74	the qualified business income with respect to 9
75	75	such trade or business as is properly allocable 10
76	76	to qualified payments received from such coop-11
77	77	erative’’. 12
78	78	(2) Section 199A(e) of such Code is amended 13
79	79	by striking paragraph (2). 14
80	80	(3) Section 199A(f)(1) of such Code is amended 15
81	81	to read as follows: 16
82	82	‘‘(1) A
83	83	PPLICATION TO PARTNERSHIPS AND S 17
84	84	CORPORATIONS.— 18
85	85	‘‘(A) I
86	86	N GENERAL.—In the case of a part-19
87	87	nership or S corporation— 20
88	88	‘‘(i) this section shall be applied at the 21
89	89	partner or shareholder level, and 22
90	90	‘‘(ii) each partner or shareholder shall 23
91	91	take into account such person’s allocable 24
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94	94	•HR 108 IH
95	95	share of each qualified item of income, 1
96	96	gain, deduction, and loss. 2
97	97	For purposes of this subparagraph, in the case 3
98	98	of an S corporation, an allocable share shall be 4
99	99	the shareholder’s pro rata share of an item. 5
100	100	‘‘(B) T
101	101	REATMENT OF TRADES OR BUSI -6
102	102	NESS IN PUERTO RICO.—In the case of any tax-7
103	103	payer with qualified business income from 8
104	104	sources within the commonwealth of Puerto 9
105	105	Rico, if all such income is taxable under section 10
106	106	1 for such taxable year, then for purposes of 11
107	107	determining the qualified business income of 12
108	108	such taxpayer for such taxable year, the term 13
109	109	‘United States’ shall include the Commonwealth 14
110	110	of Puerto Rico.’’. 15
111	111	(4) Section 199A(f)(4)(A) of such Code is 16
112	112	amended by striking ‘‘and wages’’. 17
113	113	(5) Section 199A(g)(1) of such Code is amend-18
114	114	ed by striking subparagraph (B) and redesignating 19
115	115	subparagraph (C) as subparagraph (B). 20
116	116	(6) Section 199A of such Code is amended by 21
117	117	striking subsection (h). 22
118	118	(f) E
119	119	FFECTIVEDATE.—The amendments made by 23
120	120	this section shall apply to taxable years beginning after 24
121	121	December 31, 2022. 25
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124	124	•HR 108 IH
125	125	SEC. 3. NO TAXABLE EVENT FOR CHANGE OF CORPORATE 1
126	126	FORM. 2
127	127	Notwithstanding any provision of the Internal Rev-3
128	128	enue Code of 1986, a change in the organizational struc-4
129	129	ture of a corporation, however organized, into another or-5
130	130	ganizational structure is not a taxable event for the pur-6
131	131	poses of such Code if there is no change among the own-7
132	132	ers, their ownership interests, or the assets of the organi-8
133	133	zation (other than a de minimis change in such assets). 9
134	134	The preceding sentence shall apply to changes in organiza-10
135	135	tional structure occurring after December 31, 2022. 11
136	136	SEC. 4. REPEAL OF ESTATE TAX AND RETENTION OF BASIS 12
137	137	STEP-UP. 13
138	138	Effective for estates of decedents dying after Decem-14
139	139	ber 31, 2022, chapter 11 of the Internal Revenue Code 15
140	140	of 1986 is repealed. 16
141	141	Æ
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