H.R.1, which is now the law of the land, permanently extends the 20 percent deduction for qualifying noncorporate business income (QBI).

The end result came after a rollercoaster of a journey through the legislative process. The House version increased the deduction to 23 percent and added restrictions on eligibility for the deduction. The Senate version dropped the deduction back to 20 percent and ultimately dropped new restrictions on eligibility for the deduction.

On June 25, the House Education & the Workforce Committee approved two health insurance bills that supporters say will increase small business access to affordable health insurance coverage. Committee approval came on party-line votes.

NAIFA, in conjunction with a coalition of pass-through business employers, has weighed in with Congressional leadership on the importance of extending expiring tax rules important to pass-through (S corps, partnership, sole proprietorship) businesses.

On February 24, the Main Street Employers Coalition sent a letter to Speaker of the House Rep. Mike Johnson (R-LA) and Democratic Leader Rep. Hakeem Jeffries (D-NY) urging Congress “to act quickly to prevent a massive tax hike on Main Street businesses.”

On January 3, Rep. Andy Biggs (R-AZ) introduced legislation that would repeal the limits on the kinds of businesses that are eligible for the section 199A deduction for qualifying noncorporate business income. The bill would also repeal the estate tax while retaining the step up in basis for assets passing to heirs after the decedent’s death.

On December 23, 2024, President Biden signed into law two pieces of legislation that will ease the burden on employers and insurance carriers that need to submit information to the IRS and employees on health care coverage. The Paperwork Burden Reduction Act (H.R. 3797) and the Employer Reporting Improvement Act (H.R. 3801) were championed by a bipartisan group of legislators eager to provide significant relief from paperwork burdens for small businesses.

After a series of court decisions and reversal and then a reversal of the reversal, the rule (Beneficial Ownership Information, or BOI rule) requiring most businesses to report to FinCEN (the Financial Crimes Enforcement Network) on their ownership is currently on hold, pending a judicial opinion on whether the law containing the BOI rule is constitutional.

A coalition of small business groups is urging Congress to extend by 90 days the proposed cut-off of employee retention tax credit (ERTC) claims. The Coalition to Preserve American Jobs is arguing that cutting off claims on January 31 would be “slamming the door on many eligible small business owners” right as the tax filing season begins.

On February 1, 2024, Representative Brad Finstad (R-MN) introduced the bipartisan Prove it Act in the U.S. House of Representatives. Senate Small Business and Entrepreneurship Committee Ranking Member Joni Ernst introduced the companion legislation last year. The Prove It Act aims to give small businesses a seat at the table during the regulatory process and aims to limit the regulatory burden on small businesses.

On July 24, the Internal Revenue Service (IRS) issued a final rule concerning required repayment of overpaid employment tax credits. Generally, the final rule will treat amounts paid by the government that were in excess of the correct amount as amounts that must be repaid as late payments of taxes due, subject to the usual interest and penalties rules.