French Hill U.S. House of Representatives from Arkansas's 2nd district | Official U.S. House Headshot
French Hill U.S. House of Representatives from Arkansas's 2nd district | Official U.S. House Headshot
Yesterday, legislation was introduced by Rep. French Hill, Rep. Mike Carey, and Sen. John Boozman, aimed at enhancing employee ownership through increasing the shareholder cap for S Corporations from 100 to 250. This initiative, named the S Corporation Additional Participation Act (S-CAP Act), aims to expand access to the benefits inherent to S Corporations.
"As a former community banker, I have a deep appreciation for the importance of S Corporations... That is why I am pleased to introduce the S-CAP Act, which will expand access to the benefits of S Corps," commented Rep. Hill.
Sen. Boozman echoed the sentiment, stating, "Congress has a duty to shape the tax code with pro-growth policies that spur job creation and capital investment... Congress has adjusted S Corps shareholder caps previously, and our bill is another simple but important tax code reform that will benefit millions of small businesses and the hardworking Americans who drive their success."
Rep. Carey highlighted, "S corporations are an economic cornerstone of towns across America. I am proud to partner with my friend Rep. French Hill to support this common-sense legislation... This would promote small and mid-sized businesses, allowing them to attract more investments, and ultimately create more jobs for hard-working Americans."
The legislation comes as the United States' S Corporations remain the most popular corporate structure, with the IRS estimating over 5 million S Corps nationwide. The proposed act aims to remove barriers currently restricting their potential for economic growth and development.
Patrick J. Kennedy, Jr., from the Subchapter S Bank Association, and Brian Reardon, from the S Corporation Association, are among the endorsers of this legislation. Kennedy emphasized the critical nature of the legislation for community banks, noting that it will expand community bank capital access and enable S Corp banks to continue serving their customers.
Additionally, Jake Nabholz of Nabholz Construction Corporation underscored the significance of employee ownership, citing its foundational role in his company's success and endorsing the legislation as crucial for rewarding and retaining top talent.
The S-CAP Act is also backed by the American Council of Engineering Companies.
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