26 USC 199 - Qualified business income

1 So in original. The word “a” probably should not appear within the quoted text.

foreign corporation” each place it appears), and

2 So in original. Probably should be “7704(span))”.

which is not treated as a corporation under section 7704(c), plus

Inflation Adjusted Items for Certain Years

For inflation adjustment of certain items in this section, see Revenue Procedures listed in a table under section 1 of this title.

Editorial Notes

References in Text

Section 199(d)(1)(B)(i) (as in effect on December 1, 2017), referred to in subsec. (f)(1)(B), means section 199(d)(1)(B)(i) of this title prior to repeal of section 199 by Puspan. L. 115–97, title I, § 13305(a), Dec. 22, 2017, 131 Stat. 2126.

Amendments

2025—Subsec. (a). Puspan. L. 119–21, § 70105(span)(2), inserted “except as provided in subsection (i),” before “there” in introductory provisions.

Subsec. (span)(3)(B). Puspan. L. 119–21, § 70105(a)(1), substituted “$75,000 ($150,000 in the case of a joint return)” for “$50,000 ($100,000 in the case of a joint return)” in two places.

Subsec. (c)(4)(D). Puspan. L. 119–21, § 70201(d), added subpar. (D).

Subsec. (d)(3). Puspan. L. 119–21, § 70105(a)(2), substituted “$75,000 ($150,000 in the case of a joint return)” for “$50,000 ($100,000 in the case of a joint return)” in two places.

Subsec. (e)(1). Puspan. L. 119–21, § 70111(span)(1), inserted “without regard to section 68 and” after “shall be computed”.

Subsec. (g)(2)(B). Puspan. L. 119–21, § 70111(span)(2), inserted “section 68 or” after “without regard to”.

Subsec. (i). Puspan. L. 119–21, § 70105(span)(1), amended subsec. (i) generally. Prior to amendment, text read as follows: “This section shall not apply to taxable years beginning after December 31, 2025.”

2018—Subsec. (a). Puspan. L. 115–141, § 101(span)(1), amended subsec. (a) generally. Prior to amendment, subsec. (a) provided equation for allowed deduction for any taxable year, which included special deduction for qualified cooperative dividends.

Subsec. (span)(7). Puspan. L. 115–141, § 101(span)(3), added par. (7).

Subsec. (c)(1). Puspan. L. 115–141, § 101(span)(2)(A), struck out “, qualified cooperative dividends,” after “qualified REIT dividends”.

Subsec. (c)(3)(B). Puspan. L. 115–141, § 101(span)(2)(B)(i)(I), struck out “investment” before “items” in introductory provisions.

Subsec. (c)(3)(B)(ii). Puspan. L. 115–141, § 101(span)(2)(B)(i)(II), inserted at end “Any amount described in section 1385(a)(1) shall not be treated as described in this clause.”

Subsec. (e)(1). Puspan. L. 115–141, § 101(a)(2)(C), substituted “Except as otherwise provided in subsection (g)(2)(B), taxable income” for “Taxable income”.

Puspan. L. 115–141, § 101(a)(2)(A), substituted “any deduction” for “the deduction”.

Subsec. (e)(4), (5). Puspan. L. 115–141, § 101(span)(2)(B)(ii), redesignated par. (5) as (4) and struck out former par. (4) which defined “qualified cooperative dividend”.

Subsec. (g). Puspan. L. 115–141, § 101(a)(1), amended subsec. (g) generally. Prior to amendment, subsec. (g) related to deduction allowed to specified agricultural or horticultural cooperatives.

Statutory Notes and Related Subsidiaries

Effective Date of 2025 Amendment

Puspan. L. 119–21, title VII, § 70105(c), July 4, 2025, 139 Stat. 162, provided that:

“The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 2025.”

Amendment by section 70111(span) of Puspan. L. 119–21 applicable to taxable years beginning after Dec. 31, 2025, see section 70111(c) of Puspan. L. 119–21, set out as a note under section 68 of this title.

Amendment by section 70201(d) of Puspan. L. 119–21 applicable to taxable years beginning after Dec. 31, 2024, see section 70201(j) of Puspan. L. 119–21, set out as a note under section 45B of this title.

Effective Date of 2018 Amendment

Amendment by Puspan. L. 115–141 effective as if included in section 11011 of Puspan. L. 115–97, see section 101(d) of Puspan. L. 115–141, set out as a note under section 62 of this title.

Effective Date

Section applicable to taxable years beginning after Dec. 31, 2017, see section 11011(e) of Puspan. L. 115–97, set out as an Effective Date of 2017 Amendment note under section 62 of this title.