I 
119TH CONGRESS 
1ST SESSION H. R. 3249 
To amend the Internal Revenue Code of 1986 to modify the qualified business 
income deduction. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 7, 2025 
Ms. MOORE of Wisconsin (for herself, Mr. DAVIS of Illinois, Ms. CHU, Ms. 
VELA´ZQUEZ, Ms. MCCOLLUM, and Mr. LATIMER) introduced the fol-
lowing bill; which was referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to modify 
the qualified business income deduction. 
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 ‘‘Mom and Pop Tax 
Relief Act’’. 
SEC. 2. MODIFICATION OF 199A DEDUCTION. 
(a) DEDUCTION ALLOWED FOR FIRST $25,000 OF 
QUALIFIED BUSINESS INCOME.— 
VerDate Sep 11 2014 
01:44 May 14, 2025
Jkt 059200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H3249.IH
H3249
ssavage on LAPJG3WLY3PROD with BILLS
(1) IN GENERAL.—Section 199A(b)(1) of the 
Internal Revenue Code of 1986 is amended to read 
as follows: 
‘‘(1) IN GENERAL.—The term ‘combined quali-
fied business income amount’ means, with respect to 
any taxable year, an amount equal to the lesser of— 
‘‘(A) the sum of the taxpayer’s qualified 
business income for each qualified trade or 
business carried on by the taxpayer, or 
‘‘(B) $25,000.’’. 
(2) CONFORMING AMENDMENTS.— 
(A) Section 199A(a)(2) of such Code is 
amended by striking ‘‘20 percent of’’. 
(B) Section 199A(b) of such Code is 
amended by striking paragraph (2). 
(b) CONSOLIDATED TAXPAYER LEVEL ADJUSTED 
GROSS INCOME LIMITATION.—Section 199A(b) of such 
Code, as amended by subsection (a), is amended— 
(1) by striking paragraph (3), and 
(2) by inserting after paragraph (1) the fol-
lowing new paragraph: 
‘‘(2) ADJUSTED GROSS INCOME LIMITATION.— 
The combined qualified business income of the tax-
payer for the taxable year shall be reduced (but not 
below zero) by so much of the amount by which the 
VerDate Sep 11 2014 
01:44 May 14, 2025
Jkt 059200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H3249.IH
H3249
ssavage on LAPJG3WLY3PROD with BILLS
adjusted gross income of the taxpayer exceeds 
$200,000 ($400,000 in the case of a joint return).’’. 
(c) SIMPLIFICATION WITH RESPECT TO LOSS CAR-
RYOVER.—Section 199(c) of such Code is amended by 
striking paragraph (2). 
(d) OTHER CONFORMING AMENDMENTS.— 
(1)(A) Section 199A(b) of such Code is amend-
ed by striking paragraph (4). 
(B) Section 199A(g)(1)(B)(ii) of such Code is 
amended to read as follows: 
‘‘(ii) W–2 WAGES.—For purposes of 
this subparagraph— 
‘‘(I) IN
GENERAL.—The term 
‘W–2 wages’ means, with respect to 
any person for any taxable year of 
such person, the amounts described in 
paragraphs (3) and (8) of section 
6051(a) paid by such person with re-
spect to employment of employees by 
such person during the calendar year 
ending during such taxable year. 
‘‘(II) MUST BE PROPERLY ALLO-
CABLE
TO
DOMESTIC
PRODUCTION 
GROSS RECEIPTS.—The W–2 wages of 
the taxpayer shall not include any 
VerDate Sep 11 2014 
01:44 May 14, 2025
Jkt 059200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H3249.IH
H3249
ssavage on LAPJG3WLY3PROD with BILLS
amount which is not properly allocable 
to domestic production gross receipts 
for purposes of paragraph (3)(A). 
‘‘(III) RETURN REQUIREMENT.— 
Such term shall not include any 
amount which is not properly included 
in a return filed with the Social Secu-
rity Administration on or before the 
60th day after the due date (including 
extensions) for such return.’’. 
(C) Section 199A(f)(1) of such Code is amend-
ed— 
(i) by inserting ‘‘and’’ at the end of sub-
paragraph (A)(i), 
(ii) by striking ‘‘, and’’ at the end of sub-
paragraph (A)(ii), 
(iii) by striking clause (iii), 
(iv) by striking ‘‘For purposes of clause 
(iii)’’ and all that follows through ‘‘For pur-
poses of this subparagraph’’ and inserting ‘‘For 
purposes of this subparagraph’’, and 
(v) by striking subparagraph (B) and re-
designating subparagraph (C) as subparagraph 
(B). 
VerDate Sep 11 2014 
01:44 May 14, 2025
Jkt 059200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H3249.IH
H3249
ssavage on LAPJG3WLY3PROD with BILLS
(2)(A) Section 199A(b) of such Code is amend-
ed by striking paragraph (5). 
(B) Section 199A(g)(5) of such Code is amend-
ed by adding at the end the following new subpara-
graph: 
‘‘(F) ACQUISITIONS, DISPOSITIONS, AND 
SHORT TAXABLE YEARS.—The Secretary shall 
provide for the application of this subsection in 
cases of a short taxable year or where the tax-
payer acquires, or disposes of, the major por-
tion of a trade or business or the major portion 
of a separate unit of a trade or business during 
the taxable year.’’. 
(3) Section 199A(b) of such Code is amended 
by striking paragraph (6). 
(4)(A) Section 199A(b) of such Code is amend-
ed by redesignating paragraph (7) as paragraph (3). 
(B) Section 199A(b)(3) of such Code (as so re-
designated) is amended by striking ‘‘under para-
graph (2)’’ and inserting ‘‘under paragraph (1)(A)’’. 
(5) 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’ 
VerDate Sep 11 2014 
01:44 May 14, 2025
Jkt 059200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H3249.IH
H3249
ssavage on LAPJG3WLY3PROD with BILLS
means any trade or business other than the trade or busi-
ness of performing services as an employee.’’. 
(6) Section 199A(e) of such Code is amended to 
read as follows: 
‘‘(e) TAXABLE INCOME DEFINED.—For purposes of 
this section, except as otherwise provided in subsection 
(g)(2)(B), taxable income shall be computed without re-
gard to any deduction allowable under this section.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2025. 
Æ 
VerDate Sep 11 2014 
01:44 May 14, 2025
Jkt 059200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6301
E:\BILLS\H3249.IH
H3249
ssavage on LAPJG3WLY3PROD with BILLS