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S 711 115th Congress Senate Taxation Capital gains tax Charitable contributions Corporate finance and management Employee benefits and pensions Financial services and investments Income tax deductions Income tax rates Sales and excise taxes Securities Small business Tax administration and collection, taxpayers

S Corporation Modernization Act of 2017

Introduced: March 23, 2017 Introduced by: Thune, John Republican · South Dakota See on congress.gov
 Everywhere this bill has been 2 steps
Introduced
In committee
Reported out
Passed House
Passed Senate
To President
Became law
Mar 23, 2017
Read twice and referred to the Committee on Finance.
Mar 23, 2017
Introduced in Senate
 Plain-English summary Congressional Research Service

S Corporation Modernization Act of 2017

This bill amends the Internal Revenue Code, with respect to the tax treatment of S corporations, to:

  • allow a nonresident alien to be a qualifying beneficiary of an electing small business trust (ESBT), which is a type of trust that is permitted to hold shares in an S corporation;
  • allow S corporations to increase passive investment income from 25% to 60% without incurring additional taxes;
  • eliminate a provision terminating the S corporation status of corporations with excessive passive income for three consecutive years;
  • allow any S corporation bank to have individual retirement account shareholders;
  • allow ESBTs to claim expanded tax deductions for charitable contributions;
  • allow an adjustment to the basis of an S corporation's assets upon the death of a shareholder, in the form of a 15-year amortization deduction; and
  • extend the time period for making S corporation elections.
What's happening now March 23, 2017

Read twice and referred to the Committee on Finance.

 Committees of jurisdiction 1