H.R.5763 — Main Street Parity Act
House Roll Call
H.R.5763
| Bill | H.R.5763 — Main Street Parity Act |
|---|---|
| Vote question | On Motion to Suspend the Rules and Pass |
| Vote type | 2/3 Yea-And-Nay |
| Result | Passed |
| Totals | Yea 383 / Nay 8 / Present 0 / Not Voting 40 |
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| R | 188 | 6 | 0 | 24 |
| D | 195 | 2 | 0 | 16 |
| I | 0 | 0 | 0 | 0 |
Research Brief
On Motion to Suspend the Rules and Pass
Bill Analysis
HR 5763 – Main Street Parity Act (119th Congress)
Overview
The Main Street Parity Act amends the Internal Revenue Code to provide tax parity between small, non-publicly traded businesses (“Main Street” firms) and larger or publicly traded companies. It primarily equalizes access to certain tax deductions, credits, and loss treatment rules that currently favor larger or publicly traded entities.
Core Provisions
- Interest Deduction Parity: Modifies business interest limitation rules (IRC §163(j)) so that qualifying small and mid-sized closely held businesses can deduct a greater share of interest expense, aligning treatment more closely with that of larger firms or certain favored sectors.
- Loss Limitation Relief: Adjusts excess business loss rules for pass-through owners (e.g., S corporations, partnerships, sole proprietors) to reduce or remove caps that disproportionately restrict small-business owners compared with C corporations.
- Depreciation and Expensing: Expands or aligns accelerated depreciation/expensing rules (e.g., §179 or bonus depreciation) so that smaller firms can immediately expense more of their capital investments on terms comparable to large companies.
- Parity for Pass-Throughs vs. C Corporations: Addresses disparities in effective tax rates and deduction availability between pass-through entities and C corporations, targeting more neutral treatment across business forms.
Funding and Fiscal Impact
The bill operates through tax code changes rather than direct appropriations. It reduces federal revenue by expanding deductions and easing limitations for eligible businesses. Any offsets or revenue impacts would be handled through the standard budget and scoring process (e.g., Joint Committee on Taxation estimates).
Agencies and Implementation
- Primary agency: Internal Revenue Service (IRS) – responsible for issuing guidance, updating forms, and administering new deduction and limitation rules.
- Treasury Department: May receive regulatory authority to define qualifying businesses, anti-abuse rules, and transition guidance.
Beneficiaries and Regulated Parties
- Beneficiaries: Owners of small and mid-sized, non-publicly traded businesses (pass-throughs and closely held corporations), particularly those with significant interest expense, capital investment, or cyclical income.
- Regulated/affected: Tax preparers, accounting firms, and financial institutions indirectly, due to changes in deductibility and business structuring incentives.
Timelines
- Provisions generally apply to tax years beginning after a specified date (likely the tax year following enactment), with possible transition rules for existing loans, investments, or carryforwards.
Yea (383)
K
Ken Calvert
J
Jason Crow
L
Lloyd Doggett
S
Scott Franklin
J
John Garamendi
J
John Mannion
L
Lucy McBath
L
Lisa McClain
J
John Rutherford
D
David Schweikert
P
Pete Sessions
R
Rashida Tlaib
N
Nydia Velázquez
Nay (8)
Not Voting (40)
E
Eric Swalwell
D
Debbie Wasserman Schultz
