H.R. 8755

119 HR 8755 IH: Enhanced Small Business Growth Act of 2026
 U.S. House of Representatives
 2026-05-12
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 I  119th CONGRESS  2d Session  H. R. 8755  IN THE HOUSE OF REPRESENTATIVES   May 12, 2026   Mrs. Miller of West Virginia  introduced the following bill; which was referred to the  Committee on Ways and Means    A BILL
To amend the Internal Revenue Code of 1986 to enhance the qualified business income deduction for domestic manufacturers, and for other purposes.
1.
Short title
This Act may be cited as the   Enhanced Small Business Growth Act of 2026  .
2.
Enhanced qualified business income deduction for domestic manufacturers
(a)
In general
 Section 199A  of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:
(j)
Enhanced deduction for qualified domestic manufacturers
(1)
In general
In the case of any qualified domestic manufacturer—
(A)
subsections (a)(2) and (b)(2)(A) shall each be applied by substituting  30 percent  for  20 percent , and
(B)
subsection (b)(2)(B)(i) shall be applied by substituting  100 percent  for  50 percent .
(2)
Qualified domestic manufacturer
For purposes of this subsection—
(A)
In general
The term  qualified domestic manufacturer  means, with respect to any taxable year, any taxpayer with respect to whom at least 85 percent of the combined qualified business income amount for such taxable year is derived from a qualified domestic manufacturing trade or business.
(B)
Qualified domestic manufacturing trade or business
(i)
In general
The term  qualified domestic manufacturing trade or business  means any qualified trade or business—
(I)
which manufactures tangible property, and
(II)
with respect to which at least 20 percent of the cost of goods sold for the taxable year that are allocable to qualified gross receipts are attributable to labor and overhead expenses incurred within the United States (determined under regulations prescribed by the Secretary).
(ii)
Qualified gross receipts
The term  qualified gross receipts  means, with respect to any taxable year, the gross receipts of the taxpayer during such taxable year which are derived from any lease, rental, license, sale, exchange, or other disposition of any tangible property referred to in clause (i)(I).
(3)
Regulations
The Secretary shall prescribe such regulations as are necessary to carry out the purposes of this subsection.
 .
(b)
Taxable income computation modified
Section 199A(e)(1) of such Code is amended by striking  shall be computed  and all that follows, and inserting the following:
shall be computed—
(A)
without regard to section 68,
(B)
without regard to any deduction allowable under this section, and
(C)
in the case of a taxpayer who, with respect to any taxable year, elects to itemize deductions for such taxable year, without regard to any deduction allowable under section 170.
 .
(c)
Effective date
The amendments made by this section shall apply with respect to taxable years beginning after December 31, 2025.