Section 199A Update

Section 199A has ensured that small businesses received similar benefits to large, multinational companies that saw the corporate tax rate reduced, permanently, in 2017. This deduction has strengthened American businesses, created jobs, and boosted local economies. Letting Section 199A expire will raise taxes on small businesses and this puts those businesses at a disadvantage to competitors that get to keep their corporate tax rate cut. Making these tax provisions permanent will remove an important piece of uncertainty as producers start planning future investment. Section 199A has been essential in maintaining a level playing field for small businesses, ensuring that they can continue reinvesting in their businesses, communities, and beyond. However, without action from Congress, Section 199A is set to expire at the end of 2025.