S-CAP Act of 2025

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2777 Introduced in House (IH)]

<DOC>






119th CONGRESS
  1st Session
                                H. R. 2777

 To amend the Internal Revenue Code of 1986 to increase the number of 
               eligible shareholders of an S corporation.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 9, 2025

    Mr. Hill of Arkansas (for himself and Mr. Carey) introduced the 
 following bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 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 Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``S-Corporation Additional 
Participation Act of 2025'' or the ``S-CAP Act of 2025''.

SEC. 2. INCREASE IN NUMBER OF SHAREHOLDERS TO QUALIFY AS AN S 
              CORPORATION.

    (a) In General.--Section 1361(b)(1)(A) of the Internal Revenue Code 
of 1986 is amended by striking ``100'' and inserting ``250''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2025.
                                 <all>