[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3249 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 3249
To amend the Internal Revenue Code of 1986 to modify the qualified
business income deduction.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 7, 2025
Ms. Moore of Wisconsin (for herself, Mr. Davis of Illinois, Ms. Chu,
Ms. Velazquez, Ms. McCollum, and Mr. Latimer) 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 modify the qualified
business income deduction.
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 ``Mom and Pop Tax Relief Act''.
SEC. 2. MODIFICATION OF 199A DEDUCTION.
(a) Deduction Allowed for First $25,000 of Qualified Business
Income.--
(1) In general.--Section 199A(b)(1) of the Internal Revenue
Code of 1986 is amended to read as follows:
``(1) In general.--The term `combined qualified business
income amount' means, with respect to any taxable year, an
amount equal to the lesser of--
``(A) the sum of the taxpayer's qualified business
income for each qualified trade or business carried on
by the taxpayer, or
``(B) $25,000.''.
(2) Conforming amendments.--
(A) Section 199A(a)(2) of such Code is amended by
striking ``20 percent of''.
(B) Section 199A(b) of such Code is amended by
striking paragraph (2).
(b) Consolidated Taxpayer Level Adjusted Gross Income Limitation.--
Section 199A(b) of such Code, as amended by subsection (a), is
amended--
(1) by striking paragraph (3), and
(2) by inserting after paragraph (1) the following new
paragraph:
``(2) Adjusted gross income limitation.--The combined
qualified business income of the taxpayer for the taxable year
shall be reduced (but not below zero) by so much of the amount
by which the adjusted gross income of the taxpayer exceeds
$200,000 ($400,000 in the case of a joint return).''.
(c) Simplification With Respect to Loss Carryover.--Section 199(c)
of such Code is amended by striking paragraph (2).
(d) Other Conforming Amendments.--
(1)(A) Section 199A(b) of such Code is amended by striking
paragraph (4).
(B) Section 199A(g)(1)(B)(ii) of such Code is amended to
read as follows:
``(ii) W-2 wages.--For purposes of this
subparagraph--
``(I) In general.--The term `W-2
wages' means, with respect to any
person for any taxable year of such
person, the amounts described in
paragraphs (3) and (8) of section
6051(a) paid by such person with
respect to employment of employees by
such person during the calendar year
ending during such taxable year.
``(II) Must be properly allocable
to domestic production gross
receipts.--The W-2 wages of the
taxpayer shall not include any amount
which is not properly allocable to
domestic production gross receipts for
purposes of paragraph (3)(A).
``(III) Return requirement.--Such
term shall not include any amount which
is not properly included in a return
filed with the Social Security
Administration on or before the 60th
day after the due date (including
extensions) for such return.''.
(C) Section 199A(f)(1) of such Code is amended--
(i) by inserting ``and'' at the end of subparagraph
(A)(i),
(ii) by striking ``, and'' at the end of
subparagraph (A)(ii),
(iii) by striking clause (iii),
(iv) by striking ``For purposes of clause (iii)''
and all that follows through ``For purposes of this
subparagraph'' and inserting ``For purposes of this
subparagraph'', and
(v) by striking subparagraph (B) and redesignating
subparagraph (C) as subparagraph (B).
(2)(A) Section 199A(b) of such Code is amended by striking
paragraph (5).
(B) Section 199A(g)(5) of such Code is amended by adding at
the end the following new subparagraph:
``(F) Acquisitions, dispositions, and short taxable
years.--The Secretary shall provide for the application
of this subsection in cases of a short taxable year or
where the taxpayer acquires, or disposes of, the major
portion of a trade or business or the major portion of
a separate unit of a trade or business during the
taxable year.''.
(3) Section 199A(b) of such Code is amended by striking
paragraph (6).
(4)(A) Section 199A(b) of such Code is amended by
redesignating paragraph (7) as paragraph (3).
(B) Section 199A(b)(3) of such Code (as so redesignated) is
amended by striking ``under paragraph (2)'' and inserting
``under paragraph (1)(A)''.
(5) Section 199A(d) of such Code is amended to read as
follows:
``(d) Qualified Trade or Business.--For purposes of this section,
the term `qualified trade or business' means any trade or business
other than the trade or business of performing services as an
employee.''.
(6) Section 199A(e) of such Code is amended to read as
follows:
``(e) Taxable Income Defined.--For purposes of this section, except
as otherwise provided in subsection (g)(2)(B), taxable income shall be
computed without regard to any deduction allowable under this
section.''.
(e) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2025.
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