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Earlier this week the U.S. House of Representatives passed legislation that would delay the reporting requirements under the Corporate Transparency Act (CTA) until January 1st, 2026. The Protect Small Businesses from Excessive Paperwork Act of 2025 (H.R. 736/ Senate Bill No. TBD) passed under suspension of the rules with unanimous consent in a 408-0 vote. If signed into law, the legislation would provide a long-term assurance for the small business community following weeks of back-and-forth in the courts regarding the legal status of the CTA. NLBMDA has been a leading proponent for a delay of the CTA and its passage through the U.S. House is a significant milestone towards providing relief to small businesses and LBM dealers across the United States.
A Senate companion bill was announced yesterday by Senate Banking Committee Chairman Tim Scott (R-SC). In a statement the Senator said, “Small businesses are the backbone of our economy, and we need to ensure they have the necessary time and information to comply with reporting requirements from the federal government. This commonsense bill will ensure small businesses are protected and not overly burdened by unclear and unnecessarily complicated regulations.”
Last week, the Federal government filed its official appeal in the CTA case, Smith, et al. v. U.S. Department of the Treasury, et al. Currently, there is a nationwide injunction in effect due to a court order from Smith. Given the government’s recent appeal, the nationwide injunction could likely be in jeopardy making the need to pass CTA delay legislation all the more important.
“NLBMDA commends the U.S. House for taking the swift action of passing legislation that would delay the reporting requirements under the CTA,” said NLBMDA President & CEO Jonathan Paine. “NLBMDA is now calling on the U.S. Senate to follow in the steps of the U.S. House and quickly pass this legislation to give long-term relief to the small business community.” NLBMDA will continue to strongly advocate for this legislation until it is signed into law.
Let Your Voice Be Heard: Call your Senators now to advocate for the passage of the Protect Small Businesses from Excessive Paperwork Act of 2025.
For questions, please contact NLBMDA Government Affairs Coordinator, Matthew Delaney at mdelaney@dealer.org
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