PIA National is building on our major win from earlier this year that ensured independent insurance agents could qualify for the 20 percent deduction for passthroughs.
PIA National aggressively advocated for this tax relief for passthrough entities after the tax reform law (P.L. 115-141) was passed in December 2017. We advocated for the language that was passed by Congress to be interpreted as granting the deduction to insurance agents, and our advocacy paid off when our position was adopted by the U.S. Treasury and the IRS.
Unfortunately, the passthrough deduction was not made permanent in the tax law like it was for entities organized as C corporations. As a result, the benefit for PIA members who organize as passthroughs will end on December 31, 2025, unless Congress acts.
PIA National has begun to lay the ground work to make the tax deduction permanent by supporting H.R. 216, the Main Street Tax Certainty Act of 2019, introduced by Representatives Jason Smith (R-MO) and Henry Cuellar (D-TX), which would make the 20 percent passthrough deduction permanent.
Action Opportunity for PIA Members:
PIA National will advocate for this legislation at the 2019 Federal Legislative Summit, and we are currently working to have a companion bill introduced in the Senate.
In the meantime, PIA members can act today by sending a grassroots action alert asking their Member of Congress to cosponsor and support action on H.R. 216.