119-hr3249

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3249 Introduced in House

    (IH) ]

<DOC>

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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