To remove harmful small business taxes, and for other purposes.

SA 5472. Mr. THUNE submitted an amendment intended to be proposed to
amendment SA 5194 proposed by Mr. Schumer to the bill H.R. 5376, to
provide for reconciliation pursuant to title II of S. Con. Res. 14;
which was ordered to lie on the table; as follows:

At the end of part 9 of subtitle D of title I, insert the
following:

SEC. 13904. REMOVAL OF HARMFUL SMALL BUSINESS TAXES;
EXTENSION OF LIMITATION ON DEDUCTION FOR STATE
AND LOCAL, ETC., TAXES.

(a) Removal of Harmful Small Business Taxes.--Subparagraph
(D) of section 59(k)(1), as added by section 10101, is
amended to read as follows:
``(D) Special rules for determining applicable corporation
status.--Solely for purposes of determining whether a
corporation is an applicable corporation under this
paragraph, all adjusted financial statement income of persons
treated as a single employer with such corporation under
subsection (a) or (b) of section 52 shall be treated as
adjusted financial statement income of such corporation, and
adjusted financial statement income of such corporation shall
be determined without regard to paragraphs (2)(D)(i) and (11)
of section 56A(c).''.
(b) Extension of Limitation on Deduction for State and
Local, etc., Taxes.--
(1) In general.--Section 164(b)(6) is amended--
(A) in the heading, by striking ``2025'' and inserting
``2026'', and
(B) by striking ``2026'' and inserting ``2027''.
(2) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after December 31,
2022.
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