S-CAP Act of 2025

This legislative proposal seeks to expand the eligibility criteria for S corporations by amending the Internal Revenue Code of 1986. Specifically, it increases the maximum number of permitted shareholders for an S corporation from the current limit of 100 to 250. This adjustment aims to allow more businesses to operate under the S corporation structure, which offers pass-through taxation benefits. The amendment will take effect for taxable years beginning after December 31, 2025 , providing a future implementation date for affected entities.