Last week, NEFI joined a coalition of more than 230 trade associations in a letter to Senator Steve Daines and Representative Lloyd Smucker requesting that they support the Main Street Tax Certainty Act, which would make permanent the Section 199A 20-percent deduction for small- and family-owned businesses operating as S corporations, partnerships, and sole proprietorships. Without Congressional action, Section 199A is scheduled to sunset on December 31, 2025.

The deduction was enacted in 2017 to encourage job creation and new investment by private businesses. It also helps private companies compete with public corporations. Without the deduction, pass-throughs would face rates up to 16 percentage points higher than their publicly-traded competitors.

“Our membership is made up of the Main Street businesses that define American entrepreneurship. The Section 199A deduction empowers them to hire more employees, expand their businesses, and contribute to their communities. We are proud to join with this diverse coalition of trade associations to request Congress move to make this vital tax deduction permanent,” said NEFI President & CEO Jim Collura.

NEFI will continue to monitor this situation on behalf of its members, and will provide updates as appropriate. The full letter and list of 230 trade associations that endorsed it is available here.