PIA-Backed Main Street Tax Certainty Act Reintroduced in Senate

On May 18, Senator Steve Daines (R-MT) reintroduced the “Main Street Tax Certainty Act of 2023,” a bill that would make permanent the current 20 percent tax deduction available to some passthrough entities. PIA strongly supports this legislation and joined a coalition of business groups in a letter of support for the bill. PIA’s support for the bill was noted in the press release issued the senator’s office.

PIA advocated for the 2017 tax law (Public Law No. 115-97) to apply to insurance agents because of its more favorable tax treatment of subchapter S corporations, also known as “passthrough” corporations. The law added Section 199A to the tax code, which established a tax deduction for some owners of small businesses, reducing the potential tax burden on insurance agencies that organize as passthroughs. Many PIA member agencies are independent insurance businesses organized as S corporations and benefit from the Section 199A deduction.

Unfortunately, unlike the permanent tax relief provided to entities organized as C corporations via the 2017 law, the passthrough deduction has always been temporary. As a result, eligible PIA members will no longer have access to this tax benefit after December 31, 2025, unless Congress acts. The Main Street Tax Certainty Act will provide predictability in the tax liability of eligible passthrough corporations by ensuring that this tax relief is permanently available.

PIA is also working with allies in the House to have a companion bill reintroduced in that chamber.