Sec. 70105. Extension and enhancement of deduction for qualified business income
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Subparagraph
(B)of section 199A(b)(3) is amended by striking $50,000 ($100,000 in the case of a joint return) each place it appears and inserting $75,000 ($150,000 in the case of a joint return) . Paragraph
(3)of section 199A(d) is amended by striking $50,000 ($100,000 in the case of a joint return) each place it appears and inserting $75,000 ($150,000 in the case of a joint return) . Subsection
(i)of section 199A is amended to read as follows: In the case of an applicable taxpayer for any taxable year, the deduction allowed under subsection
(a)for the taxable year shall be equal to the greater of— the amount of such deduction determined without regard to this subsection, or $400. For purposes of this subsection— The term applicable taxpayer means, with respect to any taxable year, a taxpayer whose aggregate qualified business income with respect to all active qualified trades or businesses of the taxpayer for such taxable year is at least $1,000. The term active qualified trade or business means, with respect to any taxpayer for any taxable year, any qualified trade or business of the taxpayer in which the taxpayer materially participates (within the meaning of section 469(h)). In the case of any taxable year beginning after 2026, the $400 amount in paragraph (1)(B) and the $1,000 amount in paragraph (2)(A) shall each be increased by an amount equal to — such dollar amount, multiplied by the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2025 for calendar year 2016 in subparagraph (A)(ii) thereof. If any increase under this paragraph is not a multiple of $5, such increase shall be rounded to the nearest multiple of $5. . Section 199A(a) is amended by inserting except as provided in subsection (i), before there . The amendments made by this section shall apply to taxable years beginning after December 31, 2025.