The short-term spending bill CR includes NSBA-championed language to delay the CTA for one year for existing companies.
On Tuesday, House leadership released the 1,547-page Continuing Resolution (CR) that is intended to fund the government until March 14, 2025 — the culmination of weeks of negotiation between House Republican and Democratic leadership.
Included in that bill is language to delay by one year the Corporate Transparency Act (CTA) and Beneficial Ownership Information (BOI) reporting requirement. For years, NSBA has fought hard both by filing the first national lawsuit over the CTA as well as on Capitol Hill to delay this onerous bill from harming millions of small businesses across the country.
The one-year delay of BOI filing requirements is just for entities that existed prior to January 1, 2024. The new filing deadline for those companies will be January 1, 2026. All newly-formed entities still must file BOI information with FinCEN within 90 days of receiving actual or public notice that their company’s creation or registration is effective.
This Congressional “Hail Mary” will give small businesses some certainty for the next year while NSBA’s court case—the first one filed in the country—makes its way through the court system
Below is a statement from NSBA President and CEO Todd McCracken.
“NSBA has been leading the charge against the CTA for years. There is widespread confusion and massive concern among America’s smallest businesses about the BOI reports, and by including this delay it provides much-needed predictability for small businesses.
“While this provision is only a one-year delay, I would like to personally thank Speaker Johnson (R-La.), and Reps. Emmer (R-Minn.), Nunn (R-Iowa), Hill (R-Ariz.) and McHenry (R-N.C.) for their leadership in in getting this provision included in the overall spending package. NSBA will continue to fight against this law through our lawsuit, the first one filed in the nation which is now awaiting judgement from the Eleventh Circuit Court of Appeals.
“On behalf of our 65,000 members and the 31 million small-business owners in the U.S., I applaud Congress for recognizing the massive burden the CTA truly is.”
Click here for NSBA’s CTA Resource page.
