HR 703, the Main Street Tax Certainty Act, makes a key tax deduction permanent for small business owners. It removes the temporary sunset provision (subsection (i)) from Section 199A of the tax code, ensuring the qualified business income deduction remains available for eligible small businesses. This change directly affects pass-through business owners (like S-corps, partnerships, and sole proprietorships) who currently qualify for this deduction. The permanent change takes effect for tax years starting after December 31, 2025.
The Veterans Jobs Opportunity Act creates a tax credit for veterans or their spouses starting small businesses in underserved communities. It allows eligible businesses to claim a 15% credit on up to $50,000 of qualifying start-up costs (like equipment or lease payments) during their first two years of operation. To qualify, the business must be owned and controlled by a veteran or spouse, located in an underserved area (such as a HUBZone or persistent poverty county), and meet small business size limits (under $5 million in annual revenue or 50 employees). The credit is claimed as part of the general business credit, requires taxpayer election, and the Treasury must evaluate its effectiveness every four years.
This bill modifies tax rules for investors in qualified small business stock. It reduces the required holding period from 5 years to 3 years and creates a phased exclusion scale: 50% of gains excluded after 3 years, 75% after 4 years, and 100% after 5+ years. The changes directly affect investors who buy stock in qualifying small businesses, making capital gains tax exclusion more accessible. Key mechanisms include updating Internal Revenue Code Section 1202 to reflect the shorter holding period and revised exclusion percentages, while also clarifying rules for S corporations and convertible debt instruments. These adjustments aim to incentivize investment in small businesses by lowering the tax barrier for holding qualifying stock.
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Small Business
The American Innovation Act of 2025 modifies tax rules to support new businesses by changing how start-up and organizational costs can be deducted. It allows businesses to deduct up to $20,000 (adjusted for inflation) of initial costs in the first year, with remaining costs amortized over 15 years (180 months). The bill also preserves net operating losses and tax credits for new businesses after ownership changes, helping startups maintain tax benefits when sold or restructured. This primarily affects new businesses, startups, and small companies forming new ventures beginning after December 31, 2025.
This bill amends the tax code to change how small business owners calculate a deduction for pass-through business income. It caps the deduction at $25,000 annually for eligible small businesses (defined as those with qualified business income under $25,000), while raising the income threshold for phaseout to $200,000 ($400,000 for joint filers). The changes simplify rules around loss carryovers and wage calculations for this deduction. The bill takes effect for tax years beginning after December 31, 2025.
The Small Business Tax Fairness and Compliance Simplification Act (HR 2603) extends a tax credit for employer social security taxes on employee tips in beauty service businesses (like salons, barbershops, and spas) if tips exceed 15% of the business's gross receipts from those services. It creates a "safe harbor" for employers: if they educate employees on tip reporting, track monthly tip income (for amounts $20+), and maintain records for four years, the IRS cannot audit them for tip reporting issues. Additionally, landlords renting space to beauty service businesses must report annual rental payments of $600+ per tenant to the IRS, including tenant details and payment history, with a statement provided to each tenant by January 31. These provisions target small beauty service businesses and their landlords to simplify tax compliance and clarify reporting requirements.
This bill extends key federal research grant programs for small businesses until 2030. It expands the "direct to Phase II" option for agencies (previously ending in 2025), limits these awards to 10% of an agency’s SBIR budget (15% for NIH), and requires annual reporting on such awards. It also extends the commercialization readiness program for civilian agencies and two specific pilot programs (Phase 0 and commercialization assistance) through 2030. The bill directly affects small businesses seeking federal research funding through the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs.
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Small Business
The Innovate to Save Lives Act creates a new 10% federal tax credit for small businesses that spend money on research to combat specific drug threats. It directly affects small businesses conducting qualifying research focused on mitigating the effects of fentanyl, methamphetamine, or emerging drugs designated as threats. The credit applies to eligible research expenses related to discovering ways to treat drug use, prevent it, or reduce its harm, excluding most clinical research unless it follows NIH guidelines. The bill defines "fentanyl-related substances" by specific chemical structures and requires a government report five years after enactment to track the credit's use.
The Disaster Loan Accountability and Reform Act (DLARA) requires the Small Business Administration (SBA) to improve transparency and accountability for disaster loans. It mandates monthly reports detailing loan funding status, new budget requests with historical cost comparisons, and strict limits on loan obligations when funds fall below 10% of a 10-year average. The bill also requires GAO and SBA Inspector General reviews of funding shortfalls, cost impacts of recent policy changes, and enhanced forecasting for disaster loan budgets. These provisions directly affect the SBA’s operations and its reporting to Congress, aiming to prevent future funding crises through better data and oversight.
HR 3986 exempts small businesses (as defined by the Small Business Act) from import taxes imposed under Executive Order 14257. This means small businesses importing goods for their own use will no longer pay these specific taxes. The bill directly affects small businesses meeting the size standards outlined in the Small Business Act. It removes an existing tax burden without creating new regulations or requirements.
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Small Business
