Bill > HR110

This bill, called the "Small Business Prosperity Act of 2025," proposes several significant changes to the Internal Revenue Code, primarily focusing on modifications to the qualified business income (QBI) deduction. The bill would make the QBI deduction permanent, increase the deduction percentage from 20% to 43% (rising to 47% after December 31, 2025), and remove existing limitations on the deduction. Notably, it eliminates the previous restrictions that excluded certain service trades or businesses and the requirement to consider W-2 wages when calculating the deduction. The bill also introduces provisions to prevent a taxable event when a corporation changes its organizational structure without altering ownership or assets, and it proposes to repeal the estate tax while maintaining the current basis step-up rule, which allows inherited assets to be valued at their fair market price at the time of the original owner's death. These changes would apply to taxable years beginning after December 31, 2024, and are designed to provide tax relief and simplification for businesses and their owners.