Main Street Tax Certainty Act

Main Street Tax Certainty Act

This bill makes permanent the tax deduction for qualified business income. (Under current law, the deduction expires after December 31, 2025.)

Qualified business income is defined as the net amount of qualified items of income, gain, deduction and loss with respect to any trade or business, excluding capital gains or losses, dividends, interest income, or income earned outside the U.S.

The Main Street Tax Certainty Act, also known as Bill 118 hr 4721, is a piece of legislation currently being considered by the US Congress. The purpose of this bill is to provide tax relief to small businesses and individuals in order to stimulate economic growth and job creation on Main Street.

The key provisions of the Main Street Tax Certainty Act include:

1. Making permanent certain tax provisions that are set to expire, such as the deduction for qualified business income and the increased expensing limits for small businesses. 2. Simplifying the tax code for small businesses by streamlining the process for claiming deductions and credits. 3. Providing tax incentives for small businesses to invest in their communities, such as a tax credit for hiring and training local workers. 4. Ensuring that small businesses are not burdened by unnecessary regulations and paperwork, by reducing compliance costs and increasing transparency in the tax code. Overall, the Main Street Tax Certainty Act aims to support small businesses and individuals by providing them with the certainty and stability they need to thrive in today's economy. It is hoped that by enacting this legislation, Congress can help to create a more level playing field for Main Street businesses and promote economic growth across the country.