House Introduces Small Business Tax Cut Bill
April 28, 2026 | Last Updated on: April 28, 2026
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Republicans in the House of Representatives have introduced the Small Business Tax Cut of 2026 (H.R. 8415), a bill that would increase the current 20% qualified business income (QBI) tax deduction. The GOP bill was introduced on April 21 by Rep. David Kustoff (R-TN) in the House Ways and Means Committee. It is co-sponsored by Reps. Carol Miller (R-WV), Greg Steube (R-FL), Claudia Tenney (R-NY), Mike Carey (R-OH), Michelle Fischbach (R-MN), and Blake Moore (R-UT).
The 20% QBI deduction, known officially as the Section 199a deduction of the IRS tax code, was first introduced in 2017 as part the Tax Cuts and Jobs Act of 2017, the tax bill passed during President Trump’s first term. The cut was made permanent as part of the One Big Beautiful Bill Act that President Trump signed into law on July 4, 2025.
The original tax cut allowed sole proprietors, partnerships, S corps, and some trusts to deduct up to 20% of their qualified business income from federal income taxes. Generally, the deduction applies to small business owners with pass-through income under $197,300 in annual income (single) and $394,600 in annual income (joint).
Widespread Praise From Small Business Groups
The cut received praise from small business advocacy groups such as the National Federation of Independent Businesses (NFIB) and the National Small Business Association (NSBA). The Bipartisan Policy Center originally estimated that the deduction could save taxpayers roughly $100 billion over a decade.
The new bill must be passed in the Ways and Means Committee, chaired by Rep. Jason Smith (R-MO), before undergoing a full House vote. To become law, it must then be debated and passed by the Senate and signed by President Trump before the current session of Congress ends at the beginning of 2027.
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