HouseH.R. 8755119th Congress
Enhanced Small Business Growth Act of 2026
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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8755 Introduced in House (IH)]
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119th CONGRESS
2d Session
H. R. 8755
To amend the Internal Revenue Code of 1986 to enhance the qualified
business income deduction for domestic manufacturers, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 12, 2026
Mrs. Miller of West Virginia 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 enhance the qualified
business income deduction for domestic manufacturers, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Enhanced Small Business Growth Act
of 2026''.
SEC. 2. ENHANCED QUALIFIED BUSINESS INCOME DEDUCTION FOR DOMESTIC
MANUFACTURERS.
(a) In General.--Section 199A of the Internal Revenue Code of 1986
is amended by adding at the end the following new subsection:
``(j) Enhanced Deduction for Qualified Domestic Manufacturers.--
``(1) In general.--In the case of any qualified domestic
manufacturer--
``(A) subsections (a)(2) and (b)(2)(A) shall each
be applied by substituting `30 percent' for `20
percent', and
``(B) subsection (b)(2)(B)(i) shall be applied by
substituting `100 percent' for `50 percent'.
``(2) Qualified domestic manufacturer.--For purposes of
this subsection--
``(A) In general.--The term `qualified domestic
manufacturer' means, with respect to any taxable year,
any taxpayer with respect to whom at least 85 percent
of the combined qualified business income amount for
such taxable year is derived from a qualified domestic
manufacturing trade or business.
``(B) Qualified domestic manufacturing trade or
business.--
``(i) In general.--The term `qualified
domestic manufacturing trade or business' means
any qualified trade or business--
``(I) which manufactures tangible
property, and
``(II) with respect to which at
least 20 percent of the cost of goods
sold for the taxable year that are
allocable to qualified gross receipts
are attributable to labor and overhead
expenses incurred within the United
States (determined under regulations
prescribed by the Secretary).
``(ii) Qualified gross receipts.--The term
`qualified gross receipts' means, with respect
to any taxable year, the gross receipts of the
taxpayer during such taxable year which are
derived from any lease, rental, license, sale,
exchange, or other disposition of any tangible
property referred to in clause (i)(I).
``(3) Regulations.--The Secretary shall prescribe such
regulations as are necessary to carry out the purposes of this
subsection.''.
(b) Taxable Income Computation Modified.--Section 199A(e)(1) of
such Code is amended by striking ``shall be computed'' and all that
follows, and inserting the following: ``shall be computed--
``(A) without regard to section 68,
``(B) without regard to any deduction allowable
under this section, and
``(C) in the case of a taxpayer who, with respect
to any taxable year, elects to itemize deductions for
such taxable year, without regard to any deduction
allowable under section 170.''.
(c) Effective Date.--The amendments made by this section shall
apply with respect to taxable years beginning after December 31, 2025.
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