I 
119TH CONGRESS 
1ST SESSION 
H. R. 110 
To amend the Internal Revenue Code of 1986 to expand the deduction 
for qualified business income, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 3, 2025 
Mr. BIGGS of Arizona 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 expand 
the deduction for qualified business income, and for other 
purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Small Business Pros-
perity Act of 2025’’. 
SEC. 2. INCREASE AND EXPANSION OF DEDUCTION FOR 
QUALIFIED BUSINESS INCOME. 
(a) DEDUCTION MADE PERMANENT.—Section 199A 
of the Internal Revenue Code of 1986 is amended by strik-
ing subsection (i). 
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(b) DEDUCTION TO ACHIEVE
A TOP RATE
ON 
QUALIFIED BUSINESS INCOME OF 21 PERCENT.—Sub-
sections (a)(2) and (b)(1)(B) of section 199A of such Code 
are each amended by striking ‘‘20 percent’’ and inserting 
‘‘43 percent (47 percent in the case of any taxable year 
beginning after December 31, 2025)’’. 
(c) REPEAL OF LIMITATION BASED ON W–2 WAGES 
PAID WITH RESPECT TO THE TRADE OR BUSINESS, TOP 
RATE
ON
QUALIFIED
BUSINESS
INCOME.—Section 
199A(b)(2) of such Code is amended to read as follows: 
‘‘(2) 
DETERMINATION
OF
DEDUCTIBLE 
AMOUNT
FOR
EACH
TRADE
OR
BUSINESS.—The 
amount determined under this paragraph with re-
spect to any qualified trade or business is 43 percent 
(47 percent in the case of any taxable year begin-
ning after December 31, 2025) of the taxpayer’s 
qualified business income with respect to the quali-
fied trade or business.’’. 
(d) REPEAL OF EXCLUSION OF SPECIFIED SERVICE 
TRADES OR BUSINESSES.—Section 199A(d) of such Code 
is amended to read as follows: 
‘‘(d) QUALIFIED TRADE OR BUSINESS.—For pur-
poses of this section, the term ‘qualified trade or business’ 
means any trade or business other than the trade or busi-
ness of performing services as an employee.’’. 
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(e) CONFORMING AMENDMENTS.— 
(1) Section 199A(b) of such Code is amended— 
(A) by striking paragraphs (3), (4), and 
(6), and redesignating paragraphs (5) and (7) 
as paragraphs (3) and (4), respectively, and 
(B) by striking ‘‘the lesser of—’’ and all 
that follows in paragraph (4) (as so redesig-
nated) and inserting ‘‘9 percent of so much of 
the qualified business income with respect to 
such trade or business as is properly allocable 
to qualified payments received from such coop-
erative’’. 
(2) Section 199A(e) of such Code is amended 
by striking paragraph (2). 
(3) Section 199A(f)(1) of such Code is amended 
to read as follows: 
‘‘(1) APPLICATION
TO
PARTNERSHIPS
AND
S 
CORPORATIONS.— 
‘‘(A) IN GENERAL.—In the case of a part-
nership or S corporation— 
‘‘(i) this section shall be applied at the 
partner or shareholder level, and 
‘‘(ii) each partner or shareholder shall 
take into account such person’s allocable 
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SEC. 3. NO TAXABLE EVENT FOR CHANGE OF CORPORATE 
FORM. 
Notwithstanding any provision of the Internal Rev-
enue Code of 1986, a change in the organizational struc-
ture of a corporation, however organized, into another or-
ganizational structure is not a taxable event for the pur-
poses of such Code if there is no change among the own-
ers, their ownership interests, or the assets of the organi-
zation (other than a de minimis change in such assets). 
The preceding sentence shall apply to changes in organiza-
tional structure occurring after December 31, 2024. 
SEC. 4. REPEAL OF ESTATE TAX AND RETENTION OF BASIS 
STEP-UP. 
Effective for estates of decedents dying after Decem-
ber 31, 2024, chapter 11 of the Internal Revenue Code 
of 1986 is repealed. 
Æ 
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