Section 1 Short title
This Act may be cited as the “Relief and Equity for Small businesses through Tax Act” or the “REST Act”.
Relief and Equity for Small businesses through Tax Act
A BILL
To amend the Internal Revenue Code of 1986 to increase the qualified business income deduction for taxpayers whose taxable income does not exceed $100,000, and for other purposes.
Sec. 2 Increased qualified business income deduction for certain taxpayers
In general— Section 199A of the Internal Revenue Code of 1986 is amended by redesignating subsections (h) and (i) as subsections (i) and (j), respectively, and by inserting after subsection (g) the following new subsection:
“(h) Increased deduction for certain individuals
“(1) In general—In the case of a taxpayer whose taxable income does not exceed $100,000, subsections (a)(2) and (b) shall be applied by substituting “25 percent” for “20 percent” each place it appears.
“(2) Inflation adjustment—In the case of any taxable year beginning after 2022, the dollar amount in paragraph (1) shall be increased by an amount equal to—
“(A) such dollar amount, multiplied by
“(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting “calendar year 2021” for “calendar year 2016” in subparagraph (A)(ii) thereof.”
Effective date— The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.