Small Business Tax Relief Act

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 3275 Introduced in House (IH)] <DOC> 119th CONGRESS 1st Session H. R. 3275 To amend the Internal Revenue Code of 1986 to lower the corporate tax rate for small businesses and close the carried interest loophole, and for other purposes. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES May 8, 2025 Ms. Craig 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 lower the corporate tax rate for small businesses and close the carried interest loophole, 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 ``Small Business Tax Relief Act''. SEC. 2. GRADUATED CORPORATE TAX RATE TO SUPPORT SMALL BUSINESSES. (a) In General.--Section 11(b) of the Internal Revenue Code of 1986 is amended to read as follows: ``(b) Amount of Tax.-- ``(1) In general.--Except as provided by paragraph (2), the amount of the tax imposed by subsection (a) shall be 21 percent of taxable income. ``(2) Small businesses.--In the case of a corporation with taxable income that does not exceed $5,000,000 in the taxable year, the amount of the tax imposed by subsection (a) shall be the sum of-- ``(A) 18 percent of so much of the taxable income as does not exceed $400,000, and ``(B) 21 percent of so much of the taxable income as equals or exceeds $400,000.''. (b) Effective Date.--The amendment made by this section shall apply to taxable years ending after the date of the enactment of this section. SEC. 3. PARTNERSHIP INTERESTS TRANSFERRED IN CONNECTION WITH PERFORMANCE OF SERVICES. (a) Modification to Election To Include Partnership Interest in Gross Income in Year of Transfer.--Subs