WASHINGTON — The Tire Industry Association (TIA) has signaled support for H.R. 216, the Main Street Tax Certainty Act of 2019, which would make permanent a key tax deduction for small businesses.
Sponsored by Reps. Jason Smith, R-Mo., and Henry Cuellar, D-Texas, H.R. 216 would make permanent the 20-percent qualified business income deduction for the millions of small businesses organized as S corporations, partnerships and sole proprietorships, TIA said.
This deduction previously was available only to C corporations. The 20-percent deduction is scheduled to expire for other businesses at year-end 2025.
The employers covered by the temporary 20-percent deduction represent 95 percent of U.S. businesses, TIA said in the March 25 issue of its Legislative Update.
"Repealing this sunset will benefit millions of pass-through businesses, leading to higher economic growth and more employment," the association said.
The National Federation of Independent Business also supports the bill, saying the tax cut is "greatly benefiting small businesses and the whole economy. The deduction that has contributed to record small business growth is not permanent, though, and it should be."
Introduced Jan. 3, H.R. 216 was referred to the House Committee on Ways and Means. No hearings have been scheduled.