Reichert, Kind Introduce Bill to Reduce Burden on Small Businesses

Washington, D.C. – U.S. Congressmen Dave Reichert (WA-R) and Ron Kind (WI-D) introduced the S Corporation Modernization Act (H.R. 2788) this afternoon. This proposed legislation would give tax relief to the nearly 4.5 million S corporations across the nation by allowing them to have better access to capital, compete, and hire new workers.

“There are more than 95,000 S corporations in Washington State,” said Reichert. “And with 1 in 4 workers being employed by these small businesses nationwide, it is absolutely critical that we ensure these businesses have the tools that will promote their growth, not stifle it. This is a common-sense bill, and I am proud to introduce it with my colleague Mr. Kind. We must continue to support our small businesses and allow these proven job creators to access the capital they need to grow, compete, and get Americans back to work.”

“It is critical that we ease the tax burden on our small and family owned Wisconsin businesses who are driving our economic growth,” Rep. Kind stated. “Under this legislation, S corporations will be better able to access credit, invest in their business, and create the good paying jobs that we need.”

President of the S Corporation Association, Brian Reardon, said, “We commend Reps. Reichert and Kind for their steady advocacy on behalf of Main Street businesses with their reintroduction of the S Corporation Modernization Act of 2015. As the House has passed pieces of this bill multiple times, it is important legislation that will help take the hand-cuffs off of millions of S corporation job-creators across the country and allow them to access more capital, grow their businesses and create more jobs.”

Specifically, H.R. 2788 would make needed changes to keep S corporations competitive, and ensure the continued success of America’s predominant private business model by:

• Increasing the ability of S corporations to access much-needed capital;

• Modernizing the rules that apply to firms that have selected S corporation status; and

• Easing and expanding S corporations’ ability to make charitable donations

These reforms would improve the ability of S corporations to respond to the current business environment and remove impediments that prevent them from competing on a level playing field at home in the United States.

Provisions included in this bill passed the House earlier this Congress as part of H.R 636 by a large, bipartisan  majority of 272 to 142. These provisions were introduced previously as H.R. 629 and H.R. 630.