Limitation on deduction for qualified business income

(a) In general Section 199A(a)(2) of the Internal Revenue Code of 1986 is amended— (1) in subparagraph (A), by striking the taxable income of the taxpayer for the taxable year and inserting so much of the taxable income of the taxpayer for the taxable year as does not exceed $1,000,000, and (2) in subparagraph (B), by striking the net capital gain (as defined in section 1(h)) of the taxpayer for such taxable year and inserting all income of the taxpayer for such taxable year other than qualified business income. (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2025.