Reichert, Kind Introduce Legislation to Foster Main Street Growth

Feb 2, 2015 Issues: Economy and Jobs, Tax Policy

Washington, D.C. – Today, U.S. Congressmen Dave Reichert (R-WA) and Ron Kind (D-WI) introduced H.R. 629 and 630 to make permanent two tax provisions proven to foster growth on Main Street. These provisions specifically impact S Corporations and increase the ability of these small businesses to invest, hire and expand.

Rep. Reichert said, “S Corporations are proven job creators and it is our job as legislators to make sure the tax code helps them to access the capital they need to grow, remain competitive and help get Americans back to work. I am pleased to introduce these bipartisan pieces of legislation with my colleague Congressman Kind, because our tax code should encourage growth rather than stifle it. I look forward to working with my colleagues to advance policies that help our small businesses create jobs and support families across the country.”

“These commonsense, bipartisan bills will bring stability and simplicity to the tax code to make it easier for many small businesses to create good jobs and help sustain local communities,” said Rep. Kind. “There are nearly 60,000 S Corporations in Wisconsin alone, so supporting these job creators is a top priority as we work to strengthen the economy in Wisconsin and across the country.”

Brian Reardon, Executive Director  of the S Corporation Association said, “Local communities rely on Main Street businesses for jobs and investment, and those businesses rely on Congress to make the tax rules fair and predictable.  We strongly support the continued efforts of Cong. Reichert and Cong. Kind to permanently extend these provisions to make it easier for S corporations across the country to access their own capital and put it to better use as well as encourage them to give back to their communities.” 

Background:

The first piece of legislation, H.R. 629, would make permanent the pre-2015 basis-adjustment rule for S Corporations that make charitable contributions of property, ensuring consistent treatment of charitable contributions between S Corporation shareholders and partners in a partnership.  The second piece of legislation, H.R. 630, would make permanent a reduction of the recognition period for the built-in gains tax on S Corporation appreciated property from ten years to five years.  Both of these provisions would be effective for tax years beginning after 2014.  Both bills will be included in a Ways and Means mark-up of tax legislation later this week.