S-CAP Act of 2025
The S-CAP Act of 2025 increases the maximum number of shareholders allowed for an S corporation from 100 to 250. This change directly affects small businesses that currently operate as S corporations and wish to grow their ownership structure by adding more shareholders. The bill amends the Internal Revenue Code to adjust this shareholder limit, simplifying ownership expansion for qualifying businesses. The new rule takes effect for tax years beginning after December 31, 2025.
Bill status
in committee
1 of 4 stages cleared
Introduction
Apr 2025
Committee Review
Floor Vote
President
Introduced Apr 9, 2025
Last action Apr 9, 2025
Floor votes
How they voted
No floor votes recorded yet.
Full legislative history
Actions timeline
Total actions
2
Key actions
0
Committee
1
Apr 9, 2025
Committee
Read twice and referred to the Committee on Finance.
upper
Apr 9, 2025
Introduced
Introduced in Senate
upper
1 primary · 1 co-sponsor
Sponsors
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