PRIA Logo™
119-hr-8755119th CongressWALLET

Enhanced Small Business Growth Act of 2026

Sponsored By: Representative Miller, Carol D. [R-WV-1]

Introduced

Summary

Boosts the tax break for U.S. manufacturers. This bill would raise the qualified business income deduction for eligible domestic manufacturers and tighten the rules that define who qualifies.

Show full summary
  • Manufacturers: Taxpayers with at least 85% of their qualified business income from a qualified domestic manufacturing trade or business could use a 30% QBI deduction rate instead of 20% and a wage-limit factor of 100% instead of 50%.
  • Qualification rules: A "qualified domestic manufacturing trade or business" must manufacture tangible property and have at least 20% of its cost of goods sold attributable to U.S. labor and overhead. The Secretary of the Treasury would write regulations to apply these tests.
  • Tax calculation and timing: The bill would change how taxable income is computed for the deduction by excluding section 68 limits and certain other deductions when determining the 199A benefit. The rules would apply to tax years beginning after Dec 31, 2025.

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Free to download

Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

Bigger pass-through tax break for manufacturers

If enacted, passthrough owners of manufacturing businesses would be able to claim a larger section 199A deduction. The bill would raise the deduction base from 20% to 30% and raise the wage-based cap from 50% to 100%. To qualify you would need at least 85% of your qualified business income to come from domestic manufacturing and at least 20% of the cost of goods sold tied to those sales to be U.S. labor and overhead. The Treasury would write rules to measure the 20% domestic cost test. Taxable income used to figure the 199A deduction would ignore section 68, ignore the 199A deduction itself, and (if you itemize) ignore charitable deductions under section 170. These rules would apply to tax years starting after December 31, 2025.

Sponsors & CoSponsors

Sponsor

Miller, Carol D. [R-WV-1]

WV • R

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
Back to Legislation