H.R. 2777 — Introduced in House

I 119th CONGRESS 1st Session H. R. 2777 IN THE HOUSE OF REPRESENTATIVES April 9, 2025Mr. Hill of Arkansas (for himself and Mr. Carey) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to increase the number of eligible shareholders of an S corporation. 1. Short title This Act may be cited as the S-Corporation Additional Participation Act of 2025 or the S-CAP Act of 2025. 2. Increase in number of shareholders to qualify as an S corporation (a) In general Section 1361(b)(1)(A) of the Internal Revenue Code of 1986 is amended by striking 100 and inserting 250. (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2025.