S-CAP Act of 2025

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 2777 Introduced in House (IH)] <DOC> 119th CONGRESS 1st Session H. R. 2777 To amend the Internal Revenue Code of 1986 to increase the number of eligible shareholders of an S corporation. _______________________________________________________________________ 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>