II
119th CONGRESS
1st Session
S. 1371
IN THE SENATE OF THE UNITED STATES
April 9, 2025
Mr. 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.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
Section 1. Short title
This Act may be cited as the S-Corporation Additional Participation Act of 2025
or the S-CAP Act of 2025
.
Sec. 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.