S-CAP Act of 2025

119 HR 2777 IH: S-Corporation Additional Participation Act of 2025 U.S. House of Representatives 2025-04-09 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. I 119th CONGRESS 1st Session H. R. 2777 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. 1. Short title This Act may be cited as the S-Corporation Additional Participation Act of 2025 or the S-CAP Act of 2025 . 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.