US SB3459

Creates a new tax deduction allowing qualified small businesses to deduct up to 12% of wages paid to their lowest-paid full-time employees, with per-employee caps of $8,000, $6,000, and $4,000 depending on the number designated

Limits eligibility to small business concerns with no more than 15 full-time employees that meet the gross receipts test under IRC Section 448(c), and excludes highly compensated employees from the deduction

Phases down the maximum number of employees eligible for the deduction from 10 employees (2026-2030) to 8 (2031), 6 (2032), 4 (2033), and zero thereafter

Applies to taxable years beginning after December 31, 2025, and terminates for taxable years beginning after December 31, 2033

Introduced December 11, 2025 by Senators Ossoff (D-GA) and Hyde-Smith (R-MS) and referred to the Senate Committee on Finance