From Main Street to the Forests, Tax Certainty is Essential
FLA is urging Congress to make permanent the Section 199A 20-percent deduction for pass-through businesses permanent by passing the Main Street Tax Certainty Act. For forestry businesses setup as pass-through businesses, such as S-corporations, LLC, partnerships, or sole-proprietorships, the 20 percent deduction is a necessary tool to remain competitive with the corporate tax rate. This deduction was passed as part of the Tax Cuts and Jobs Act in 2017 and is set to expire at the end of 2025.
Led by Representatives Jason Smith (MO) and Henry Cuellar (TX) in the House, and Senators Steve Daines (MT), Bill Cassidy (LA), Tim Scott (SC), and Rob Portman (OH) in the Senate, the Main Street Tax Certainty Act (H.R. 1381 and S.480) will help ensure permanent tax parity for the millions of employers organized as S corporations, partnerships and sole proprietorships. Individually- and family-owned businesses are the backbone of the American economy – they employ the majority of private-sector workers and represent 95 percent of all businesses. Despite the economic importance of the pass-through sector, however, Section 199A is scheduled to sunset at the end of 2025.
FLA supports permanency of the 20 percent deduction and is actively monitoring any tax legislation that could impact future tax bills of timber owners. The sooner Congress acts to make Section 199A permanent, the sooner Main Street and forestry related businesses – will benefit. Read the letter sent to Congress