H.R. 8755

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8755 Introduced in House (IH)]

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119th CONGRESS
2d Session
H. R. 8755

To amend the Internal Revenue Code of 1986 to enhance the qualified 
business income deduction for domestic manufacturers, and for other 
purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

May 12, 2026

Mrs. Miller of West Virginia introduced the following bill; which was 
referred to the Committee on Ways and Means

_______________________________________________________________________

A BILL

To amend the Internal Revenue Code of 1986 to enhance the qualified 
business income deduction for domestic manufacturers, and for other 
purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Enhanced Small Business Growth Act 
of 2026''.

SEC. 2. ENHANCED QUALIFIED BUSINESS INCOME DEDUCTION FOR DOMESTIC 
MANUFACTURERS.

(a) In General.--Section 199A of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
``(j) Enhanced Deduction for Qualified Domestic Manufacturers.--
``(1) In general.--In the case of any qualified domestic 
manufacturer--
``(A) subsections (a)(2) and (b)(2)(A) shall each 
be applied by substituting `30 percent' for `20 
percent', and
``(B) subsection (b)(2)(B)(i) shall be applied by 
substituting `100 percent' for `50 percent'.
``(2) Qualified domestic manufacturer.--For purposes of 
this subsection--
``(A) In general.--The term `qualified domestic 
manufacturer' means, with respect to any taxable year, 
any taxpayer with respect to whom at least 85 percent 
of the combined qualified business income amount for 
such taxable year is derived from a qualified domestic 
manufacturing trade or business.
``(B) Qualified domestic manufacturing trade or 
business.--
``(i) In general.--The term `qualified 
domestic manufacturing trade or business' means 
any qualified trade or business--
``(I) which manufactures tangible 
property, and
``(II) with respect to which at 
least 20 percent of the cost of goods 
sold for the taxable year that are 
allocable to qualified gross receipts 
are attributable to labor and overhead 
expenses incurred within the United 
States (determined under regulations 
prescribed by the Secretary).
``(ii) Qualified gross receipts.--The term 
`qualified gross receipts' means, with respect 
to any taxable year, the gross receipts of the 
taxpayer during such taxable year which are 
derived from any lease, rental, license, sale, 
exchange, or other disposition of any tangible 
property referred to in clause (i)(I).
``(3) Regulations.--The Secretary shall prescribe such 
regulations as are necessary to carry out the purposes of this 
subsection.''.
(b) Taxable Income Computation Modified.--Section 199A(e)(1) of 
such Code is amended by striking ``shall be computed'' and all that 
follows, and inserting the following: ``shall be computed--
``(A) without regard to section 68,
``(B) without regard to any deduction allowable 
under this section, and
``(C) in the case of a taxpayer who, with respect 
to any taxable year, elects to itemize deductions for 
such taxable year, without regard to any deduction 
allowable under section 170.''.
(c) Effective Date.--The amendments made by this section shall 
apply with respect to taxable years beginning after December 31, 2025.
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