PIA aggressively advocated for tax relief for passthrough entities after the tax reform law (P.L. 115-141) was passed and signed into law in December 2017. We advocated for the language that was passed by Congress to be interpreted as granting the passthrough tax deduction to insurance agents organized as Subchapter S corporations, and our efforts paid off when our position was adopted by the U.S. Treasury and the IRS.

Unfortunately, the passthrough deduction for insurance agents was made temporary in the tax law, unlike the permanent deduction for entities organized as C corporations. As a result, the benefit for PIA members who organize as passthroughs will end on December 31, 2025, unless Congress acts.  

PIA has begun to lay the groundwork to make the tax deduction permanent by supporting legislation H.R. 703/S.213, the Main Street Tax Certainty Act, sponsored by Rep. Lloyd Smucker (R-PA) and Senator Steve Daines (R-MT).  This legislation would make the 20 percent passthrough deduction permanent.

Action Steps: 

• If you've sent a message in the past, just make sure all your information is correct and click "send message."

or 

• If you haven't sent a message before, please take a few seconds to fill in your information in the box to the right: name, email, address, and zip code. This allows the message to go to the appropriate U.S. House member and Senators. If possible, please include your home address.

 
For more information on this issue, please contact Corey Weeks, Manager of Government Relations: cweeks@pianational.org