Senate Bill 711
115th Congress(2017-2018)
S Corporation Modernization Act of 2017
Introduced
Introduced in Senate on Mar 23, 2017
Origin Chamber
Senate
Type
Bill
Bill
The primary form of legislative measure used to propose law. Depending on the chamber of origin, bills begin with a designation of either H.R. or S. Joint resolution is another form of legislative measure used to propose law.
Bill Number
711
Congress
115
Policy Area
Taxation
Taxation
Primary focus of measure is all aspects of income, excise, property, inheritance, and employment taxes; tax administration and collection. Measures concerning state and local finance may fall under Economics and Public Finance policy area.
No Senate votes have been held for this bill.
Summary
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.
March 23, 2017
03/23/2017
Read twice and referred to the Committee on Finance.
03/23/2017
Introduced in Senate
Public Record
Record Updated
Jan 11, 2023 1:36:13 PM