REST Act

I 117TH CONGRESS 1ST SESSION H. R. 3725 To amend the Internal Revenue Code of 1986 to increase the qualified business income deduction for taxpayers whose taxable income does not exceed $100,000, and for other purposes. IN THE HOUSE OF REPRESENTATIVES JUNE 4, 2021 Ms. NEWMAN introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to increase the qualified business income deduction for taxpayers whose taxable income does not exceed $100,000, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Relief and Equity for 4 Small businesses through Tax Act’’ or the ‘‘REST Act’’. 5 VerDate Sep 11 2014 00:56 Jul 20, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3725.IH H3725 pbinns on DSKJLVW7X2PROD with BILLS 2 •HR 3725 IH SEC. 2. INCREASED QUALIFIED BUSINESS INCOME DEDUC- 1 TION FOR CERTAIN TAXPAYERS. 2 (a) IN GENERAL.—Section 199A of the Internal Rev- 3 enue Code of 1986 is amended by redesignating sub- 4 sections (h) and (i) as subsections (i) and (j), respectively, 5 and by inserting after subsection (g) the following new 6 subsection: 7 ‘‘(h) INCREASED DEDUCTION FOR CERTAIN INDIVID- 8 UALS.— 9 ‘‘(1) IN GENERAL.—In the case of a taxpayer 10 whose taxable income does not exceed $100,000, 11 subsections (a)(2) and (b) shall be applied by sub- 12 stituting ‘25 percent’ for ‘20 percent’ each place it 13 appears. 14 ‘‘(2) INFLATION ADJUSTMENT.—In the case of 15 any taxable year beginning after 2022, the dollar 16 amount in paragraph (1) shall be increased by an 17 amount equal to— 18 ‘‘(A) such dollar amount, multiplied by 19 ‘‘(B) the cost-of-living adjustment deter- 20 mined under section 1(f)(3) for the calendar 21 year in which the taxable year begins, deter- 22 mined by substituting ‘calendar year 2021’ for 23 ‘calendar year 2016’ in subparagraph (A)(ii) 24 thereof. 25 VerDate Sep 11 2014 00:56 Jul 20, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3725.IH H3725 pbinns on DSKJLVW7X2PROD with BILLS 3 •HR 3725 IH If any increase determined under this paragraph is 1 not a multiple of $1,000, such increase shall be 2 rounded to the nearest multiple of $1,000.’’. 3 (b) EFFECTIVE DATE.—The amendments made by 4 this section shall apply to taxable years beginning after 5 the date of the enactment of this Act. 6 Æ VerDate Sep 11 2014 00:56 Jul 20, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H3725.IH H3725 pbinns on DSKJLVW7X2PROD with BILLS