II
119THCONGRESS
1
STSESSION S. 1371
To amend the Internal Revenue Code of 1986 to increase the number of
eligible shareholders of an S corporation.
IN THE SENATE OF THE UNITED STATES
APRIL9, 2025
Mr. B
OOZMANintroduced the following bill; which was read twice and referred
to the Committee on Finance
A BILL
To amend the Internal Revenue Code of 1986 to increase
the number of eligible shareholders of an S corporation.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘S-Corporation Addi-4
tional Participation Act of 2025’’ or the ‘‘S-CAP Act of 5
2025’’. 6
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•S 1371 IS
SEC. 2. INCREASE IN NUMBER OF SHAREHOLDERS TO 1
QUALIFY AS AN S CORPORATION. 2
(a) I
NGENERAL.—Section 1361(b)(1)(A) of the In-3
ternal Revenue Code of 1986 is amended by striking 4
‘‘100’’ and inserting ‘‘250’’. 5
(b) E
FFECTIVEDATE.—The amendment made by 6
this section shall apply to taxable years beginning after 7
December 31, 2025. 8
Æ
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