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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3459 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 3459
To amend the Internal Revenue Code of 1986 to provide a payroll tax
deduction for certain small businesses, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
December 11, 2025
Mr. Ossoff (for himself and Mrs. Hyde-Smith) introduced the following
bill; which was read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide a payroll tax
deduction for certain small businesses, and for other purposes.
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 ``Support Small Business Growth Act of
2025''.
SEC. 2. PAYROLL TAX DEDUCTION FOR SMALL BUSINESSES.
(a) In General.--Part VI of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 is amended by inserting after section 176
the following new section:
``SEC. 177. PAYROLL DEDUCTION FOR QUALIFIED SMALL BUSINESSES.
``(a) In General.--In the case of a qualified small business, in
addition to the deduction allowed by section 162(a)(1), there shall be
allowed as a deduction an amount equal to the sum of the applicable
amounts determined under subsection (b)(2) with respect to each full-
time employee of the employer which has been designated by such
employer pursuant to subsection (b)(1).
``(b) Limitations; Applicable Amount.--
``(1) Designation of employees.--
``(A) In general.--For purposes of subsection (a),
with respect to any taxable year, the full-time
employees designated by the employer (at such time and
in such manner as the Secretary may provide) shall--
``(i) not exceed the applicable maximum
number of employees,
``(ii) only include those full-time
employees with the lowest wages paid during
such taxable year relative to all other full-
time employees of such employer, and
``(iii) not include any highly compensated
employee.
``(B) Applicable maximum number.--For purposes of
subparagraph (A), the applicable maximum number with
respect to any qualified small business is--
``(i) 10, in the case of a taxable year
beginning in 2026, 2027, 2028, 2029, or 2030,
``(ii) 8, in the case of a taxable year
beginning in 2031,
``(iii) 6, in the case of a taxable year
beginning in 2032,
``(iv) 4, in the case of a taxable year
beginning in 2033, and
``(v) zero thereafter.
``(2) Applicable amount.--
``(A) In general.--For purposes of subsection (a),
with respect to each full-time employee designated
pursuant to paragraph (1), the applicable amount shall
be an amount equal to the lesser of--
``(i) the applicable wage limitation, or
``(ii) 12 percent of the wages paid to such
employee during the taxable year.
``(B) Applicable wage limitation.--For purposes of
subparagraph (A), the applicable wage limitation is--
``(i) $8,000, with respect to the number of
full-time employees designated pursuant to
paragraph (1) which is equal to--
``(I) the applicable maximum number
with respect to the qualified small
business for the taxable year, reduced
by
``(II) 2,
``(ii) $6,000, with respect to 1 additional
such employee, if applicable, and
``(iii) $4,000, with respect to 1
additional such employee, if applicable.
``(c) Qualified Small Business.--For purposes of this section, the
term `qualified small business' means, with respect to a taxable year,
a small business concern (as defined under section 3 of the Small
Business Act) which--
``(1) as of the last date of such taxable year--
``(A) has not more than 15 full-time employees, and
``(B) meets the gross receipts test of section
448(c), and
``(2) certifies to the Secretary, at such time and in such
manner as the Secretary shall prescribe, that such concern
meets the requirements of this subsection for the taxable year.
``(d) Definitions.--For purposes of this section--
``(1) Full-time employee.--The term `full-time employee'
has the meaning given such term by section 4980H(c)(4).
``(2) Highly compensated employee.--The term `highly
compensated employee' has the meaning given such term by
section 414(q).
``(e) Termination.--This section shall not apply to taxable years
beginning after December 31, 2033.''.
(b) Clerical Amendment.--The table of sections for part VI of
subchapter B of chapter 1 of the Internal Revenue Code of 1986 is
amended by inserting after the item relating to section 176 the
following new item:
``Sec. 177. Payroll deduction for qualified small businesses.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2025.
<all>
Introduced in Senate
Read twice and referred to the Committee on Finance.
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