S-Corporation Additional Participation Act of 2025

S. 1371 · 119th Congress · Apr 9, 2025 · Lineage

A BILL

To amend the Internal Revenue Code of 1986 to increase the number of eligible shareholders of an S corporation.

This Act may be cited as the “S-Corporation Additional Participation Act of 2025” or the “S-CAP Act of 2025”.

(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.