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S1371119th CongressWALLET
S-CAP Act of 2025
Sponsored By: Senator Boozman, John [R-AR]
Introduced
Summary
Expands S-corporation ownership cap. This bill would raise the maximum number of shareholders an S corporation may have from 100 to 250. That change would let more owners, investors, and employee-owners participate in S corporations while keeping the single pass-through tax treatment that S corps use. The higher shareholder limit would apply to taxable years beginning after December 31, 2025. It does not alter other S-corporation eligibility rules, definitions, or sunset provisions in the cited code section.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
More owners allowed in S corporations
This bill would allow S corporations to have up to 250 shareholders instead of 100. The change would apply to taxable years beginning after December 31, 2025. If enacted, this would let business owners add more investors or employee-owners while keeping S-corp pass-through taxation.
Sponsors & CoSponsors
Sponsor
Boozman, John [R-AR]
AR • R
Cosponsors
Sen. McConnell, Mitch [R-KY]
KY • R
Sponsored 9/9/2025
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov