# 119-hr-3275: Small Business Tax Relief Act

119-hr-3275, Small Business Tax Relief Act, is a 119th Congress bill sponsored by Rep. Craig, Angie [D-MN-2] (D-MN); status introduced; PRIA reads it as touching household money (as of 2026-06-12).

- Canonical: https://policyrisk.com/legislation/119-hr-3275
- As of: 2026-06-12
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-hr-3275
- Congress: 119
- Title: Small Business Tax Relief Act
- Status: introduced
- Introduced: 2025-05-08
- Sponsor: Rep. Craig, Angie [D-MN-2] (D-MN)
- Cosponsors: 0
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2026-06-12

## Summary

**Rewriting tax rules for investment managers and small corporations.** This bill would change corporate rates for small C corporations and create a new Subchapter K regime that reclassifies many partnership gains tied to investment management as ordinary income and tightens reporting and penalties.

## Provisions PRIA read

- Bigger self-employment tax deduction under $400K: benefit, high. If passed, individuals with AGI under $400,000 could deduct 75% of self-employment taxes, instead of 50%. This would lower taxable income and could reduce taxes owed. It would apply to tax years starting after December 31, 2024.
- Lower tax rate for small corporations: benefit, high. If enacted, C corporations with taxable income up to $5,000,000 would get a lower starter rate. They would pay 18% on the first $400,000 and 21% on income above $400,000. Corporations over $5,000,000 would generally pay 21% on all income. This would apply to tax years ending after enactment.
- Tougher tax rules on carried interest: cost, medium. If enacted, partners who provide investment management services would have more income taxed as ordinary income, not capital gains. Selling or getting paid out on these partnership interests could also be taxed as ordinary income. Certain dividends and small-business stock gains tied to these inter…
- Higher tax on corporate stock buybacks: cost, low. If passed, the excise tax on stock repurchases would rise to 1.5% from 1%. The higher rate would apply to buybacks after December 31, 2024. For example, a $1,000,000 buyback would owe $15,000 instead of $10,000.

## Related bills

- 119-hr-10421: Transforming Education for the Future Act
- 119-hr-6900: American Affordability Act of 2025
- 119-hr-4669: FEMA Act of 2025
- 119-hr-7977: Energy Bills Relief Act
- 119-hr-10061: Wildfire Response and Readiness Act
- 119-hr-7973: Momnibus Act

## Sources
- [119-hr-3275 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/3275)

## Related
- [119-hr-10421: Transforming Education for the Future Act](https://policyrisk.com/legislation/119-hr-10421)
- [119-hr-6900: American Affordability Act of 2025](https://policyrisk.com/legislation/119-hr-6900)
- [119-hr-4669: FEMA Act of 2025](https://policyrisk.com/legislation/119-hr-4669)
- [119-hr-7977: Energy Bills Relief Act](https://policyrisk.com/legislation/119-hr-7977)
- [119-hr-10061: Wildfire Response and Readiness Act](https://policyrisk.com/legislation/119-hr-10061)
- [119-hr-7973: Momnibus Act](https://policyrisk.com/legislation/119-hr-7973)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-hr-3275 (as of 2026-06-12).