Association points to tax benefits for franchised businesses.
While President Donald Trump’s “Big, Beautiful Bill” tax incentives package has yet to pass in the U.S. Senate, the International Franchise Association (IFA) has applauded its approval in the House of Representatives.
The budget legislation narrowly passed in the House by a vote of 215 to 214 on May 22 and now faces updates and debate in the Senate. But according to the IFA, the act includes tax priorities that will benefit franchised small businesses.
The association also notes that without the proposed legislation, small businesses and 831,000 franchise owners could face a major tax increase by the end of 2025.
“This legislation represents an exciting step forward for America’s Main Street economy,” Michael Layman, IFA chief advocacy officer, said in statement issued by the association. “These tax provisions will provide long-term certainty, ease operational burdens, and fuel growth for franchise owners across the country. From local restaurants to home services and childcare centers, franchise businesses support millions of jobs—and this bill gives them the tools to keep hiring, expanding, and serving their communities.”
This legislation includes several priorities for franchise small businesses, including:
- Section 199A deduction increased to 23% and made permanent
- 5-year extension of EBITDA/interest deductibility
- 5-year extension for 100% bonus depreciation
- Permanently doubling the estate tax exemption from $15M to $30M
- No tax on tips and no tax on overtime for four years
“We applaud the House for taking this step and urge the Senate to act quickly,” Layman said.
Tax provisions remain a top priority for the IFA, which addressed the issue in its Roadmap for Franchise Growth, released in January at the start of Congress.
IFA members include franchise companies in over 300 different business format categories, individual franchisees, and companies that support the industry in marketing, law, technology, and business development.
