# 114-hr-2788: S Corporation Modernization Act of 2015

114-hr-2788, S Corporation Modernization Act of 2015, is a 114th Congress bill sponsored by Rep. Reichert, David G. [R-WA-8] (R-WA); status Referred to the House Committee on Ways and Means. (as of 2025-11-18).

- Canonical: https://policyrisk.com/legislation/114-hr-2788
- As of: 2025-11-18
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 114-hr-2788
- Congress: 114
- Title: S Corporation Modernization Act of 2015
- Status: Referred to the House Committee on Ways and Means.
- Introduced: 2015-06-16
- Sponsor: Rep. Reichert, David G. [R-WA-8] (R-WA)
- Cosponsors: 5
- Policy area: Taxation
- Touches household money: no
- Last recorded action: 2025-11-18

## Summary

S Corporation Modernization Act of 2015  Amends the Internal Revenue Code to revise the tax treatment of S corporations by: (1) permanently reducing from 10 to 5 years the period during which S corporation built-in gains are subject to tax, (2) repealing mandatory termination of S corporation elections for excessive passive investment income, (3) allowing S corporations to increase passive investment income from 25 to 60% without incurring additional tax, (4) allowing nonresident aliens to be potential current beneficiaries of an electing small business trust (ESBT), (5) allowing individual retirement accounts to be S corporation shareholders, (6) allowing ESBTs to claim expanded charitable tax deductions, and (7) making permanent the rule requiring a basis adjustment to stock of an S corporation making charitable contributions of property.

## Cosponsors (5)

- Rep. Kind, Ron [D-WI-3] (D-WI), 2015-06-16T00:00:00.000Z
- Rep. Marchant, Kenny [R-TX-24] (R-TX), 2015-06-17T00:00:00.000Z
- PATRICK TIBERI (R-OH), 2015-06-18T00:00:00.000Z
- Rep. Renacci, James B. [R-OH-16] (R-OH), 2015-06-25T00:00:00.000Z
- Rep. Paulsen, Erik [R-MN-3] (R-MN), 2015-07-07T00:00:00.000Z

## Related bills

- 114-hr-5621: To posthumously award a Congressional Gold Medal to Lawrence Eugene "Larry" Doby in recognition of his achievements and contributions to American major league…
- 114-hr-5447: Small Business Health Care Relief Act of 2016
- 114-hr-5292: Air Traffic Controller Hiring Improvement Act of 2016
- 114-hr-5082: Investing in Opportunity Act
- 114-hr-4938: Free File Act of 2016
- 114-hr-3917: CARS Act of 2015

## Sources
- [114-hr-2788 on Congress.gov](https://www.congress.gov/bill/114th-congress/house-bill/2788)

## Related
- [114-hr-5621: To posthumously award a Congressional Gold Medal to Lawrence Eugene "Larry" Dob…](https://policyrisk.com/legislation/114-hr-5621)
- [114-hr-5447: Small Business Health Care Relief Act of 2016](https://policyrisk.com/legislation/114-hr-5447)
- [114-hr-5292: Air Traffic Controller Hiring Improvement Act of 2016](https://policyrisk.com/legislation/114-hr-5292)
- [114-hr-5082: Investing in Opportunity Act](https://policyrisk.com/legislation/114-hr-5082)
- [114-hr-4938: Free File Act of 2016](https://policyrisk.com/legislation/114-hr-4938)
- [114-hr-3917: CARS Act of 2015](https://policyrisk.com/legislation/114-hr-3917)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/114-hr-2788 (as of 2025-11-18).