diff --git a/changelog_entry.yaml b/changelog_entry.yaml
index e69de29bb2d..49da54dec0e 100644
--- a/changelog_entry.yaml
+++ b/changelog_entry.yaml
@@ -0,0 +1,4 @@
+- bump: patch
+  changes:
+    fixed:
+    - Qualified business defaults to true.
diff --git a/policyengine_us/variables/household/income/person/self_employment/business_is_qualified.py b/policyengine_us/variables/household/income/person/self_employment/business_is_qualified.py
index c8bc9686d56..dfa1b4830cb 100644
--- a/policyengine_us/variables/household/income/person/self_employment/business_is_qualified.py
+++ b/policyengine_us/variables/household/income/person/self_employment/business_is_qualified.py
@@ -9,3 +9,4 @@ class business_is_qualified(Variable):
     documentation = "Whether all income from self-employment, partnerships and S-corporations is from qualified businesses. A qualified trade or business is any trade or business other than a specified service trade or business, or employment. The list of specified service trades can be found at https://www.law.cornell.edu/uscode/text/26/1202#e_3_A."
     definition_period = YEAR
     reference = "https://www.law.cornell.edu/uscode/text/26/199A#d_1"
+    default_value = True