A Push to Repeal the CTA
Originally Published by: HBS Dealer — January 20, 2025
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Rep. Warren Davidson, R-Ohio, has introduced a bill to repeal the Corporate Transparency Act (CTA), a law that requires small businesses to report detailed ownership information to the federal government. The bill, H.R. 425, has gained support from 68 cosponsors in the House. A similar bill in the Senate, S. 100, introduced by Sen. Tommy Tuberville, R-Ala., currently has 24 cosponsors.
“FinCEN is violating small business owners’ privacy by forcing them to hand over sensitive information,” Davidson said. “The Corporate Transparency Act is a disaster for small businesses and must be repealed immediately.”
The National Lumber and Building Material Dealers Association (NLBMDA) is backing the effort. Earlier this month, NLBMDA signed a letter supporting the repeal.
“NLBMDA applauds lawmakers for taking this important first step,” said Jonathan Paine, the group’s president and CEO. “We’ll continue working with our partners to push for this legislation’s passage.”
The push to repeal the CTA comes amid an ongoing legal battle over the law’s constitutionality. A federal court temporarily blocked enforcement of a Jan. 1, 2025, deadline for small businesses to report their ownership information. The U.S. government has appealed that decision to the Supreme Court, where Justice Samuel Alito is considering the case. The court has not announced when it will make a decision.
In the meantime, lawmakers and advocacy groups are urging the court to keep the temporary block in place. Last week, 13 House Republicans and Sen. Thom Tillis, R-N.C., filed a brief with the Supreme Court supporting the injunction. Several other groups have also submitted briefs.
NLBMDA said it will continue monitoring the case and providing updates to its members. For questions, contact NLBMDA Government Affairs Coordinator Matthew Delaney at mdelaney@dealer.org.