Budget legislation includes association-supported tax cuts for small businesses.
By Andrew Carlo
With approval in the Senate and the House of Representatives, Congress has now sent the Big, Beautiful Bill Act to the White House for President Trump’s signature.
Lead by the GOP, the spending legislation passed through the House of Representatives for a second time on July 3, meeting Trump’s July 4 deadline. And while meeting heavy opposition from Democrats in Congress, the International Trade Federation (IFA) has applauded the act saying it will provide a boost to franchise and small business owners.
According to the IFA, the budget reconciliation measure includes top priorities championed by IFA to deliver tax relief for America’s 831,000 franchised small businesses.
“Today’s House vote caps a major victory for franchise small businesses and the millions of workers they support,” said Matt Haller, IFA president and CEO. “Franchise owners and their employees now have certainty that key tax provisions will remain in place to support their businesses and encourage future growth, while avoiding a major tax increase at the end of the year. We commend both chambers of Congress and President Trump for getting this critical legislation across the finish line to unlock new opportunities for franchise businesses nationwide.”
Prior to the bill’s approval, Haller and nine franchise owners were invited by Trump to the White House in an effort to get the legislation moved forward in Congress.
Here are several pieces of the act, which have been spotlighted and championed by the IFA:
- 199A Deduction: Made permanent at the current 20% rate
- Estate Tax: Exemption made permanent and increased to $15M/$30M, indexed
- Bonus Depreciation: 100% expensing made permanent for qualified property
- Business Interest Deduction: Permanently restores the EBITDA standard
- No Taxes on Tips: Above-the-line deduction up to $25,000; tip credit extended to salons (2025–2028)
- No Tax on Overtime: Above-the-line deduction up to $12,500 for individuals and $25,000 for couples (2025–2028)
The IFA said that addressing tax provisions has been a priority for the franchise industry. Earlier this year, the association outlined these priorities in its Roadmap for Franchise Growth released at the start of the Congress.
Franchises who attended the White House event on June 26 include:
- Jerry Akers – Palo, Iowa (Great Clips, The Joint Chiropractic, and ZDynamix)
- David Barr – Atlanta, GA (Capriotti’s Sandwich Shop, KFC, Taco Bell, and others)
- Randy Cross – Grand Rapids, MI/Missouri (Fish Window Cleaning)
- Tamra Kennedy – St. Paul, Minnesota (Taco John’s)
- Jesse Keyser – St. Louis, MO (Sport Clips, Waxing the City, Oxi Fresh Carpet Cleaning, Little Caesars)
- David Ostrowe – Oklahoma City, OK (Burger King, Blaze Pizza, Taco Bell)
- Gary Robins – Kennett Square, PA (Supercuts, Waxing the City)
- Jyoti Sarolia – San Diego, CA (Ellis Hospitality)
- Clement Troutman – Odenton, MD (Tropical Smoothie Café and PJ’s Coffee)
The IFA says it works through government relations and public policy, media relations, and educational programs to protect, enhance and promote franchising.
The association’s members include franchise companies in over 300 business categories, individual franchisees, and suppliers supporting the industry in marketing, law, technology, and business development.
