summary
Introduced
04/09/2025
04/09/2025
In Committee
04/09/2025
04/09/2025
Crossed Over
Passed
Dead
Introduced Session
119th Congress
Bill Summary
A BILL To amend the Internal Revenue Code of 1986 to increase the number of eligible shareholders of an S corporation.
AI Summary
This bill proposes to modify the Internal Revenue Code by increasing the maximum number of shareholders allowed in an S corporation from 100 to 250. S corporations are a specific type of business structure that allows companies to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes, while providing liability protection similar to a traditional corporation. Currently, S corporations are limited to 100 shareholders, but this legislation would expand that limit to 250 shareholders, potentially making it easier for growing businesses to maintain their S corporation status and providing more flexibility for companies seeking to raise capital or expand ownership. The change would take effect for taxable years beginning after December 31, 2025, giving businesses and tax professionals time to prepare for the new shareholder limit.
Committee Categories
Budget and Finance
Sponsors (12)
French Hill (R)*,
Andy Barr (R),
Mike Carey (R),
Byron Donalds (R),
Mike Haridopolos (R),
Lisa McClain (R),
Dan Meuser (R),
Tim Moore (R),
María Salazar (R),
Derek Schmidt (R),
Marlin Stutzman (R),
Ann Wagner (R),
Last Action
Referred to the House Committee on Ways and Means. (on 04/09/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.congress.gov/bill/119th-congress/house-bill/2777/all-info |
| BillText | https://www.congress.gov/119/bills/hr2777/BILLS-119hr2777ih.pdf |
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