S. 1371 — Introduced in Senate

II 119th CONGRESS 1st Session S. 1371 IN THE SENATE OF THE UNITED STATES April 9, 2025Mr. Boozman introduced the following bill; which was read twice and referred to the Committee on Finance 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.