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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 amends the Internal Revenue Code to increase the maximum number of shareholders allowed in an S corporation from 100 to 250. S corporations are a type of business structure that provides certain tax advantages and pass-through taxation benefits to their owners. The increased shareholder limit would allow S corporations to grow larger while maintaining their tax status. The amendment would be effective for taxable years beginning after December 31, 2025. This change would permit more individuals to participate as shareholders in S 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)
- Sen. Boozman, John [R-AR] (R-AR)
1 cosponsor
- Sen. McConnell, Mitch [R-KY] (R-KY)
Actions (2)
- Apr 9, 2025 Read twice and referred to the Committee on Finance. · senate
- Apr 9, 2025 Introduced in Senate
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.
Full text
IN THE SENATE OF THE UNITED STATES
April 9, 2025
Mr. Boozman 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 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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