The Reintroduction of the Main Street Tax Certainty Act

In January, Senator Steve Daines (R-MT) and Congressman Lloyd Smucker (R-PA-11) reintroduced their Main Street Tax Certainty Act — legislation to make permanent the Section 199A deduction. The bills mirror S. 1706 and H.R. 4706 from last Congress, meaning the campaign to protect Main Street from looming tax hikes is once again a bicameral and bipartisan effort.

The legislation introduced builds on SMACNA’s prior success in a big way. Whereas the previous House bill garnered support from 91 original cosponsors — a significant feat in and of itself — Congressman Smucker’s bill was released with the backing of 151 original cosponsors. It’s the same story in the Senate, with 36 original cosponsors signing onto Senator Daines’ legislation compared to 14 the last time around.

Also notable is the fact that every member of the Senate Republican Leadership team backed the Main Street Tax Certainty Act, as well as the full roster of Republicans on the House Ways & Means Committee. That’s in addition to the more than 235 trade associations that joined our letter thanking Senator Daines and Congressman Smucker on this critical issue.

And it’s not just Congressional tax-writers who support 199A permanence, as we saw during the Member Day hearing. 

Here’s what Congressman Tony Wied (R-WI) had to say: “I strongly support making the 199A tax deduction permanent to provide much needed relief to the small businesses, working families and farmers in my district and across the country. Should Congress fail to renew 199A, 52,230 small businesses in Wisconsin’s 8th District would be hit with an unconscionable 43.4% tax rate. Any limitation or reduction in 199A would unfairly target and hurt middle class taxpayers and the small businesses who are the lifeblood of our economy.”

And Congressman Tom Barrett (R-MI): “Our small business owners, the backbone of our local economy, will face even greater challenges. For example, nearly 44,000 small businesses in mid-Michigan will see their tax rate rise to 43% if the Small Business Deduction expires… These numbers are not just statistics — they are stories of struggle and sacrifice. They represent families deciding between paying their bills or putting money aside for the future and small business owners weighing whether they can afford to expand or hire.”

And Congressman Tim Moore (R-NC): “Western North Carolina’s economy also relies on small businesses — our state is home to over 964,000 small businesses, which employ nearly half of our workforce. These business owners have told me that without the certainty of the TCJA’s small business deductions, their ability to invest in new equipment, hire workers and expand operations would be at risk. Making these provisions permanent isn’t just good policy, it’s essential to their survival. Because if these provisions were to expire, North Carolina would lose 5.9 million jobs, $540 billion in wages, and $1.1 trillion in economic output.”

The bottom line is that Section 199A is more than just a tax provision. It protects thousands of local communities from fewer jobs and more boarded up buildings, reduces the tax burden on local businesses to make them more competitive and allows multi-generation businesses to stay family-owned.

SMACNA is extremely grateful to Congressman Smucker and Senator Daines for their leadership on this issue, as well as the dozens of lawmakers that supported the Main Street Tax Certainty Act. S-Corp and the Main Street Employers Coalition are looking forward to working together to get this critical legislation enacted before it’s too late.