Small Business Tax Cut Act

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 8415 Introduced in House (IH)] <DOC> 119th CONGRESS 2d Session H. R. 8415 To amend the Internal Revenue Code of 1986 to increase the deduction for qualified business income, and for other purposes. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES April 21, 2026 Mr. Kustoff (for himself, Mrs. Miller of West Virginia, Mr. Steube, Ms. Tenney, Mr. Carey, Mrs. Fischbach, and Mr. Moore of Utah) 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 deduction for qualified business income, 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 Cut Act''. SEC. 2. INCREASE IN DEDUCTION FOR QUALIFIED BUSINESS INCOME. (a) In General.--Subsections (a)(2), (b)(1)(B), and (b)(2)(A) of section 199A of the Internal Revenue Code of 1986 are each amended by striking ``20 percent'' and inserting ``23 percent''. (b) Modification of Limitations Based on Taxable Income.-- (1) In general.--Section 199A(b)(3) of such Code is amended to read as follows: ``(3) Modification of determination of combined qualified business income amount based on taxable income.-- ``(A) Exception from limitations.--In the case of any taxpayer whose taxable income for the taxable year does not exceed the threshold amount-- ``(i) paragraph (2) shall be applied without regard to subparagraph (B), and ``(ii) a specified service trade or business shall not fail to be treated as a qualified trade or business solely by reason of subsection (d)(1)(A). ``(B) Phase-in of limitations.--In the case of any taxpayer whose taxable income for the taxable year exceeds the