Montana, 10.17.2024 – Today, the PROTECT Coalition, representing a diverse group of businesses and entrepreneurs from across Montana, issued a formal letter to U.S. Senate candidates Senator Jon Tester and Mr. Tim Sheehy. The letter emphasizes the urgent need to protect the Section 199A tax deduction for pass-through businesses, a provision of the 2017 Tax Cuts and Jobs Act that plays a pivotal role in supporting Montana’s small business community.
Section 199A allows pass-through entities—such as S corporations, partnerships, LLCs, and sole proprietorships—to deduct up to 20% of their qualified business income. This deduction has provided crucial tax relief for Montana businesses, enabling reinvestment in operations, job creation, and offering competitive wages and benefits to employees. The 199A deduction also is intended to treat pass-through entities and corporations similarly tax-wise, and not advantage one business form over another.
“The 199A tax deduction is a lifeline for small businesses, which are the backbone of Montana’s economy,” the letter states. “Without this deduction, hundreds of thousands of business owners would face significant challenges in maintaining growth, employment, and competitiveness in a still-recovering economy.”
The coalition highlights concerns that upcoming Congressional debates about the tax code could result in reductions or eliminations of the deduction, which would severely impact the economic vitality of Montana businesses. Notably, about 95% of U.S. businesses are eligible for this deduction, accounting for a significant share of national employment and GDP.
“As candidates for the U.S. Senate, we urge Senator Tester and Mr. Sheehy to prioritize protecting the 199A deduction. It is essential to maintaining a robust and innovative business environment in Montana,” said Russ Sullivan, a representative of the PROTECT Coalition. “Preserving this incentive ensures that entrepreneurs, family businesses, and local employers can continue contributing to our communities, driving innovation, and creating jobs.”
The PROTECT Coalition will continue to advocate for policies that benefit small and medium-sized businesses, stressing that the preservation of the 199A deduction is not a partisan issue but a vital economic concern.
For more information about the PROTECT Coalition and its advocacy efforts, please visit ProtectCoalition.com.
Comments are closed