S-CAP Act of 2025

119 S1371 IS: S-Corporation Additional Participation Act of 2025 U.S. Senate 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. II 119th CONGRESS 1st Session S. 1371 IN THE SENATE OF THE UNITED STATES April 9, 2025 Mr. Boozman introduced the following bill; which was read twice and referred to the Committee on Finance 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.