The "Mom and Pop Tax Relief Act" significantly modifies the existing qualified business income (QBI) deduction under Section 199A of the Internal Revenue Code. Instead of a 20 percent deduction, the bill allows taxpayers to directly deduct their QBI, up to a maximum of $25,000 per taxable year. This change aims to simplify the calculation and potentially provide a more straightforward benefit for small businesses. A new adjusted gross income (AGI) limitation is introduced, which begins to reduce the deduction for taxpayers with an AGI exceeding $200,000 , or $400,000 for those filing a joint return. This ensures the deduction primarily benefits lower and middle-income business owners. The legislation also streamlines the QBI deduction by eliminating several complex provisions, including those related to W-2 wage limitations, unadjusted basis of qualified property, and the previous exclusion of specified service trades or businesses, making the deduction more accessible and easier to calculate for many small enterprises.