🚨 Call to Action
Please contact your U.S. Senators to voice your opposition to a provision in the House-passed reconciliation bill that unfairly targets small business dental practices—and other service-based professions—by eliminating the ability to deduct pass-through entity taxes (PTET) at the federal level.
This change could result in a new tax increase on dentists who own or are partners in practices structured as pass-through entities, especially in high-tax states. According to estimates from the Academy of Dental CPAs, approximately 30% of dentists nationally would be directly impacted.
What’s the Issue?
The U.S. House of Representatives recently passed H.R. 1, the One Big Beautiful Bill Act, which includes a provision eliminating federal deductibility for state-level PTET payments for certain service professions—including dentists.
Dentists operating under pass-through entities have relied on PTET elections for tax parity and financial viability. This proposed change would reverse that, effectively raising taxes on small dental practice owners based solely on their legal structure.
Dentists already face limitations under the Section 199A small business deduction. This new provision would double the penalty—further separating service-based practices from other small businesses and large corporations.
Why It Matters
- Raises taxes on dental practice owners operating as pass-through entities
- Reduces tax parity between small businesses and large corporations
- Penalizes healthcare providers amid rising operating costs
- Jeopardizes reinvestment in staffing, technology, and patient care—especially in rural and underserved areas
How You Can Help
- Call or email your U.S. Senators today.
- Ask them to fix this unfair tax increase on dentists and other service-based small businesses before H.R. 1 moves to the Senate floor.
Your voice matters. Help protect your practice and your patients by
