S Corporation Modernization Act of 2026
To amend the Internal Revenue Code of 1986 to provide for S corporation reform, and for other purposes.
This bill, HB9840, aims to make changes to the Internal Revenue Code of 1986, focusing on reforming the rules for S corporations. S corporations are a special type of corporation that allows income, losses, deductions, and credits to pass through to shareholders for federal tax purposes. The proposed changes could impact businesses that operate as S corporations by modifying how they are taxed and managed.
The bill would affect businesses that choose to be taxed as S corporations, potentially altering their tax liabilities and how they report income. This could lead to changes in how these businesses operate and potentially affect their shareholders as well.
HB9840 was introduced on July 22, 2026, and was immediately referred to the House Committee on Ways and Means for further review and consideration. There have been no further actions taken on the bill as of the latest status date.
