119-hr2777

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2777 Introduced in House

    (IH) ]

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119th CONGRESS
 1st Session
 H. R. 2777

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

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 April 9, 2025

 Mr. Hill of Arkansas (for himself and Mr. Carey) 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 number of 
 eligible shareholders of an S corporation.

 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 ``S-Corporation Additional 
Participation Act of 2025'' or the ``S-CAP Act of 2025''.

SEC. 2. INCREASE IN NUMBER OF SHAREHOLDERS TO QUALIFY AS AN S 
 CORPORATION.

    (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.
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