A new bill seeks to simplify rules for Main Street businesses and make it easier for them to be competitive.
Rep. Brad Wenstrup (R-OH) introduced the S Corporation Modernization Act of 2024 (H.R. 8619) on June 4. The bill was referred to the House Committee on Ways and Means, of which Wenstrup is a member. The full text of the bill was not available as of Friday, June 7, but a summary from the S Corp Association of America said it would push forward three technical provisions that were important to S corporations, including:
- Increasing their access to capital
- Expanding the list of eligible shareholders to include more employees, non-resident aliens and retirement accounts
- Eliminating rules that penalize S corporations compared to partnerships and other business forms.
“Well into the 21st century, America’s most popular form of small-business corporation deserves rules adapted to the economy we live in today,” said Brian Reardon, president of the S Corp Association. “The S Corporation Modernization Act would ensure the continued success of these businesses by modernizing the rules that apply to firms that have selected S corporation status.”