Read twice and referred to the Committee on Finance.
This bill amends Section 1361(b)(1)(A) of the Internal Revenue Code to raise the maximum number of shareholders allowed for an S corporation from 100 to 250. The change applies to taxable years beginning after December 31, 2025.
Progressives stress tax fairness and revenue risk.
Relative to its intended legislative type, this bill is a narrowly targeted substantive amendment that is crisply drafted to accomplish a single change in the Internal Revenue Code: raising the S corporation shareholder limit from 100 to 250, with a clear effective date.
This bill amends Section 1361(b)(1)(A) of the Internal Revenue Code to raise the maximum number of shareholders allowed for an S corporation from 100 to 250.
The change applies to taxable years beginning after December 31, 2025.
Technically straightforward and low-salience, so plausible if attached to larger tax legislation; standalone passage limited by fiscal concerns and competing priorities.
Relative to its intended legislative type, this bill is a narrowly targeted substantive amendment that is crisply drafted to accomplish a single change in the Internal Revenue Code: raising the S corporation shareholder limit from 100 to 250, with a clear effective date.
Progressives stress tax fairness and revenue risk.
These are examples from the analysis, not a ranked list of the most-affected groups.
Progressives stress tax fairness and revenue risk.
Likely cautiously receptive to helping small businesses grow, but concerned about tax fairness and potential revenue loss.
Will want data on who benefits and safeguards against wealthy taxpayers exploiting the change.
Generally favorable as a targeted, incremental regulatory change to help small businesses scale.
Wants fiscal estimates and anti-abuse safeguards to balance growth with revenue integrity.
Strongly supportive as pro-growth, pro-entrepreneurship reform that reduces regulatory constraints.
Views expansion as a modest deregulatory step helping businesses and job creation.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Technically straightforward and low-salience, so plausible if attached to larger tax legislation; standalone passage limited by fiscal concerns and competing priorities.
The bill has not accumulated any surfaced votes yet.
Progressives stress tax fairness and revenue risk.
Technically straightforward and low-salience, so plausible if attached to larger tax legislation; standalone passage limited by fiscal conc…
Relative to its intended legislative type, this bill is a narrowly targeted substantive amendment that is crisply drafted to accomplish a single change in the Internal Revenue Code: raising the S corporation shareholder…
Go beyond the headline summary with full stakeholder mapping, legislative design analysis, passage barriers, and lens-by-lens tradeoff breakdowns.