Call to Action:
Please contact your 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 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. Approximately 30% of dentists nationally would be directly impacted, based on estimates from the Academy of Dental CPAs.
What’s the Issue?
The House of Representatives recently advanced H.R. 1, the One Big Beautiful Bill Act, which included a provision that would eliminate federal deductibility for state-level PTET payments by certain service professions, including dentists. There was an extremely limited timeframe to restore the provision before the bill left the House.
Dentists who own practices structured as pass-through entities have relied on PTET elections to guarantee tax parity and remain financially viable. This change would reverse that, raising taxes on dentists simply based on how their practice is organized.
Dentists are already limited under the small business (Sec. 199A) deduction, and this proposal adds a second tax penalty, further widening the gap between service-based practices, other small businesses, and large corporations simply by how you are incorporated.
Why It Matters
- Raises taxes on dental practice owners who file as S corps or partnerships
- Reduces parity between pass-through businesses and large corporations
- Penalizes healthcare providers in the midst of rising operating costs
- Jeopardizes reinvestment in staffing, technology, and patient care, especially in rural or underserved areas.
How You Can Help
Call or email your Senators today. Tell them to fix this unfair tax increase on dentists and other service-based small businesses before H.R. 1 moves to the Senate floor.
Take Action Now