H.R. 703: Main Street Tax Certainty Act
Sponsor
Lloyd Smucker
Republican · PA-11
Bill Progress
Latest Action · Jan 23, 2025
Referred to the House Committee on Ways and Means.
The 20% small business deduction is set to expire
Why it matters
A deduction that lets pass-through business owners write off up to 20% of their business income is scheduled to disappear after December 31, 2025. H.R. 703 would strike that expiration date and keep the deduction on the books for good. It arrives with 192 cosponsors in the House.
H.R. 703, the Main Street Tax Certainty Act, does one thing: it removes the expiration date on the qualified business income deduction so the break does not end after 2025.
Here is the deduction it protects. Owners of pass-through businesses — sole proprietorships, partnerships, and S corporations, where profits flow onto the owner's personal return — can deduct up to 20% of that qualifying income before figuring their tax. Congress created it in 2017 but set it to sunset.
The bill deletes the sunset and applies the change to tax years that begin after December 31, 2025. That is the whole bill: two sections, no new deduction, no larger percentage, no change to who qualifies.
What it leaves untouched matters as much as what it changes. The existing rules — including the income thresholds and the limits on certain professional service businesses — stay exactly as they are today.
H.R. 703 Bill Summary
What H.R. 703 actually does.
The 20% deduction becomes permanent
H.R. 703 deletes the sunset provision on the qualified business income deduction, so the break continues instead of ending after 2025.
The change starts with 2026 tax years
The bill applies to taxable years beginning after December 31, 2025 — in practice, the returns most filers prepare in early 2027 and every year after.
The rules stay the same
The bill does not raise the 20% figure or rewrite who is eligible. The current income thresholds and the limits on certain service businesses carry over unchanged.
A large House coalition is already behind it
Rep. Lloyd Smucker is the sponsor, and Congress.gov lists 192 cosponsors. That head start does not guarantee a floor vote, but it signals early momentum.
Who benefits from H.R. 703?
Sole proprietors and the self-employed
If you report business profit on your own return and qualify today, you would keep a deduction that can shave a fifth of that income off your taxable total year after year.
Partnership and S corporation owners
Owners whose share of business income flows onto their personal returns could keep claiming the deduction in 2026 and beyond, as long as they still meet the existing rules.
Small businesses planning for the long term
A deduction with no expiration date is easier to build into hiring, pricing, and expansion decisions than one that resets every few years.
Tax preparers and accountants
A permanent rule removes a recurring what-if from every client's plan. No more modeling the tax hit of a break that might vanish at year's end.
Who is affected by H.R. 703?
Filers who claim the deduction now
They are the most directly affected: this bill decides whether the break ends after 2025 or continues into 2026 and later.
Business owners who do not qualify today
They would not gain access. H.R. 703 keeps the current deduction from expiring, but it does not widen who is eligible.
Federal budget writers
Making a temporary deduction permanent reduces future federal revenue compared with letting it lapse, though the bill text carries no official cost estimate.
The House Ways and Means Committee
This committee decides whether the bill advances in the House, so it is the first gatekeeper the proposal has to clear.
HR703 Legislative Journey
House: Committee Action
Jan 23, 2025
Referred to the House Committee on Ways and Means.
About the Sponsor
Lloyd Smucker
Republican, Pennsylvania's 11th congressional district · 9 years in Congress
Committees: Joint Economic Committee, the Budget, Ways and Means
View full profile →
Cosponsors (192)
This bill has 192 cosponsors: 3 Democrats, 189 Republicans. Cosponsors represent 40 states: Alaska, Alabama, Arkansas, and 37 more.
Mike Kelly
Republican · PA
Darin LaHood
Republican · IL
Beth Van Duyne
Republican · TX
Vern Buchanan
Republican · FL
Carol Miller
Republican · WV
Randy Feenstra
Republican · IA
Gregory Murphy
Republican · NC
Pete Stauber
Republican · MN
John Joyce
Republican · PA
Mike Bost
Republican · IL
Dan Crenshaw
Republican · TX
Daniel Meuser
Republican · PA
Cosponsor Coverage Map
Committee Sponsors
Ways and Means Committee
24 of 45 committee members cosponsored
2 Republicans across this committee haven't cosponsored yet. Mobilize their constituents
What laws does H.R. 703 change?
1 changes
Sections Amended
Section 199A of Internal Revenue Code of 1986
striking subsection (i)
H.R. 703 Quick Facts
- Committee
- Ways and Means
- Chamber
- House
- Policy
- Taxation
- Introduced
- Jan 23, 2025
Referred to the House Committee on Ways and Means.
Jan 23, 2025
Official Sources
Official bill page with status, cosponsors, committee referral, text, and actions for the Main Street Tax Certainty Act.
Official U.S. Code page for Section 199A, the qualified business income deduction that H.R. 703 would make permanent.
Official IRS overview of the Section 199A qualified business income deduction that H.R. 703 would make permanent, including what counts as QBI and how the 20% break is figured.
IRS instructions for the simplified qualified business income deduction form used by many eligible filers.
IRS instructions for the more detailed qualified business income deduction calculation, relevant to partnerships, S corporations, and higher-complexity filers.
IRS page explaining S corporation shareholder reporting, relevant because H.R. 703 affects deduction availability for eligible pass-through owners.
H.R. 703 Common Questions
What does H.R. 703 do?
It makes the qualified business income deduction permanent by removing the expiration date that would otherwise end it after 2025. It keeps an existing tax break in place rather than creating a new one.
How much is the qualified business income deduction worth?
Eligible owners can deduct up to 20% of their qualifying business income. On $100,000 of that income, that's a $20,000 deduction — at a 22% marginal rate, roughly $4,400 less in federal tax for the year.
When would the deduction expire without H.R. 703?
Under current law it ends for tax years beginning after December 31, 2025. H.R. 703 deletes that deadline so the deduction continues into 2026 and beyond.
Who qualifies for the deduction?
Owners of pass-through businesses — sole proprietorships, partnerships, and S corporations — whose profits flow onto their personal returns. H.R. 703 keeps the current eligibility rules; it does not widen who can claim it.
Does H.R. 703 change the income limits or the rules for service businesses?
No. The bill only removes the expiration date. The existing income thresholds and the limits that apply to certain professional service businesses carry over unchanged.
Does it apply to S corporations and partnerships?
Yes, if their owners already qualify. Income that flows through to a personal return can still claim the deduction in future tax years, since the bill preserves the current rules rather than broadening them.
What is the current status of H.R. 703?
It was introduced by Rep. Lloyd Smucker and referred to the House Ways and Means Committee. Congress.gov lists 192 cosponsors.
Based on H.R. 703 bill text
H.R. 703 Bill Text
“To amend the Internal Revenue Code of 1986 to make permanent the deduction for qualified business income.”
Source: U.S. Government Publishing Office
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