WASHINGTON — Heating, Air-conditioning & Refrigeration Distributors International (HARDI) applauds bipartisan and bicameral legislation recently introduced this past month to Congress regarding S corporation rules updates.
“Upward of 65 percent of HARDI’s wholesale distributor members are pass-through entities,” said HARDI Vice President of Government Affairs, Jon Melchi. “This is such an encouraging piece of bipartisan legislation amid all the polarizing rhetoric coming out of Washington. The S Corporation Modernization Act will bring this important issue to the table as Congress heads into tax reform deliberations in the coming months.”
Sens. John Thune, R-S.D., and Ben Cardin, D-Md., are cosponsoring the Senate bill, S. 711, and Reps. Dave Reichert, R-Wash., and Ron Kind, D-Wis., are cosponsoring the House version, H.R. 1696.
There are more than 4.5 million S corporations nationwide. They are in every community and every industry, and they employ one out of every four private sector workers.
The S Corporation Modernization Act would ensure the continued success of these businesses by:
- Increasing their access to capital by reducing S corporation ownership restrictions;
- Easing punitive restrictions that apply to converted S corporations and punish the unwary; and
- Leveling the rules of S corporations and partnerships when their assets are passed on from one generation to the next.
For more information, contact Anthony Lagunzad at alagunzad@hardinet.org.
Publication date: 5/11/2017
