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Qualified Business Income (QBI) deduction

A tax deduction allowing owners of pass-through businesses (like sole proprietorships, partnerships, and S corporations) to deduct up to 20% of their business income from their taxable income.

Internal Revenue Code of 1986

The official body of U.S. federal tax law, as amended over the years, that governs how taxes are collected and enforced.

Pass-through entity

A business structure, such as a sole proprietorship, partnership, or S corporation, where business income 'passes through' directly to the owners' personal tax returns and is taxed at their individual income tax rates, rather than at the corporate level.

Subsection (i)

A specific part of a larger section within a law, in this case, a provision within Section 199A of the tax code that specifies the deduction's expiration date.

Sunset clause

A provision in a law that states when the law or parts of it will expire or be terminated, unless explicitly renewed.