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To amend the Internal Revenue Code of 1986 to increase the number of eligible shareholders of an S corporation.
Summary
This bill would amend the Internal Revenue Code to increase the maximum number of shareholders an S corporation can have from 100 to 250. The change would apply to taxable years beginning after December 31, 2025. S corporations are a common business structure for small to mid-sized businesses that combines certain tax benefits of partnerships with liability protections similar to corporations.
AI-generated plain-language summary of the bill text — neutral, and may be imperfect. See the full text below for the exact wording.
Sponsor (1)
19 cosponsors
- Rep. Barr, Andy [R-KY-6] (R-KY)
- Rep. Carey, Mike [R-OH-15] (R-OH)
- Rep. Casten, Sean [D-IL-6] (D-IL)
- Rep. Donalds, Byron [R-FL-19] (R-FL)
- Rep. Fitzpatrick, Brian K. [R-PA-1] (R-PA)
- Rep. Guthrie, Brett [R-KY-2] (R-KY)
- Rep. Haridopolos, Mike [R-FL-8] (R-FL)
- Rep. McClain, Lisa C. [R-MI-9] (R-MI)
- Rep. McGarvey, Morgan [D-KY-3] (D-KY)
- Rep. Meuser, Daniel [R-PA-9] (R-PA)
- Rep. Moore, Tim [R-NC-14] (R-NC)
- Rep. Nunn, Zachary [R-IA-3] (R-IA)
- Rep. Palmer, Gary J. [R-AL-6] (R-AL)
- Rep. Salazar, Maria Elvira [R-FL-27] (R-FL)
- Rep. Schmidt, Derek [R-KS-2] (R-KS)
- Rep. Stutzman, Marlin A. [R-IN-3] (R-IN)
- Rep. Taylor, David J. [R-OH-2] (R-OH)
- Rep. Wagner, Ann [R-MO-2] (R-MO)
- Rep. Womack, Steve [R-AR-3] (R-AR)
Money behind the sponsor
Top reported contributors to J. French Hill’s campaign committee (2024 cycle) — who funds the bill’s sponsor, not a claim about this bill. Data from FEC.
Organizations whose employees gave the most — itemized individual contributions grouped by the donor’s reported employer (FEC Schedule A). Full finance for J. French Hill → · Outside spending →
Actions (2)
- Apr 9, 2025 Referred to the House Committee on Ways and Means. · house
- Apr 9, 2025 Introduced in House
Similar bills (6)
Bills with similar text or summary — includes reintroductions across Congresses. Ranked by semantic similarity of the bill text (computed locally); a neutral discovery aid, not a claim the bills are duplicates.
Text versions (1)
Bills are re-published as they move (Introduced → Reported → Engrossed → Enrolled …). Each stage below is a separate text; pick two to see what changed. Data from Congress.gov.
Full text
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>
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