H.R. 9840 · Where this bill is now
In committee
Introduced in the House, sent to the Committee on Ways and Means, Jul 22, 2026
119th Congress
2nd SessionH. R. 9840
2nd SessionH. R. 9840
A BILL
S Corporation Modernization Act of 2026
In the HouseNo vote yet
Sponsor: Rep. Mike Carey (R-OH-15) · Introduced Jul 22, 2026 · Taxation · 1 version of the text
Sources: Congress.gov actions and votes · bill text from GovInfo · latest official action Jul 22, 2026: “Referred to the House Committee on Ways and Means.”
Sections
Sections · 9
- Sec. 1Short title; referenceNo change
- Sec. 2Treatment of S corporation built-in gain amount upon death of shareholderNo change
- Sec. 3Modifications to S corporation passive investment income rulesNo change
- Sec. 4Nonresident alien individuals permitted as S corporation shareholdersNo change
- Sec. 5Employees of a firm counted as a single shareholder toward shareholder limit of S corporationNo change
- Sec. 6Expansion of S corporation eligible shareholders to include IRAsNo change
- Sec. 7Transfer of suspended losses incident to deathNo change
- Sec. 8Repeal of inclusion in gross income of deferred compensation under nonqualified deferred compensation plansNo change
- Sec. 9Increase in number of shareholders to qualify as an S corporationNo change