# The QBI deduction (§199A)

> Up to 20% of pass-through income, now permanent and with a $400 floor — and never for a C corporation.

Source: https://lopifi.com/learn/how-business-entities-are-taxed/qbi-deduction
Part of: Lopifi — US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

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**What is the Section 199A QBI deduction, and is it still available?** Up to 20% of pass-through income, now permanent and with a $400 floor — and never for a C corporation.

The [qualified business income deduction](https://lopifi.com/md/glossary/qualified-business-income-deduction) lets an owner of a pass-through business deduct up to 20% of its qualified business income, capped at 20% of taxable income less net capital gain. It is for "a taxpayer other than a corporation", so a C corporation never gets it. Above an inflation-indexed income threshold, wage and property limits and a rule for specified service businesses phase in; that part is the preparer's.

> “In the case of a taxpayer other than a corporation, except as provided in subsection (i),”

— [26 U.S.C. §199A(a), (i), as amended by Pub. L. 119-21 §70105](https://www.law.cornell.edu/uscode/text/26/199A), The qualified business income deduction — 20%, made permanent, with a $400 minimum

> **After the 2025 law.** It was due to expire after 2025. Pub. L. 119-21 struck the expiry, widened the phase-in ranges, and added a minimum deduction from 2026: $400 for an owner with at least $1,000 of qualified business income from businesses they materially participate in, indexed after 2026.

**Scenario — Where the $400 minimum matters.** A side project with $1,500 of qualified business income, run by an owner with $60,000 of taxable income. 20% would be $300; the minimum lifts the deduction to $400.

## Where this page's rules come from

- [26 U.S.C. §199A(a), (i), as amended by Pub. L. 119-21 §70105](https://www.law.cornell.edu/uscode/text/26/199A) — The qualified business income deduction — 20%, made permanent, with a $400 minimum (statute)

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