Only a week after the 2019 PIA Federal Legislative Summit (FLS), Senator Steve Daines (R-MT), has introduced a PIA National priority, S. 1149, the “Main Street Tax Certainty Act of 2019,” to make permanent the 20 percent tax deduction available to passthrough entities. S.1149 is the companion bill to H.R. 216, bipartisan House legislation introduced by Representatives Jason Smith (R-MO) and Henry Cuellar (D-TX) in the House of Representatives earlier this year.
PIA National played a key role in ensuring this tax relief for passthrough entities after the tax reform law (P.L. 115-141) was passed in December 2017. While our efforts for the deduction to apply to insurance agents paid off, the passthrough deduction was not made permanent in the tax law like similar tax benefits were 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.
To that end, PIA National has been working with congressional allies to have legislation introduced in both chambers to address the issue and make the deduction permanent. PIA National strongly supports both the House and Senate legislation to ensure independent insurance agencies receive this benefit permanently.