House Passes Small Business Tax Relief Bill

The U.S. House of Representatives has passed broad domestic legislation that includes tax provisions meant to benefit small business owners, including franchises. The legislation, now moving to the Senate, has sparked political debate and drawn praise from some business advocates.

If enacted, the legislation could provide long-term support for small business owners, addressing several tax provisions that are currently set to expire. This includes a permanent 23% deduction under Section 199A, a five-year extension of both EBITDA deductibility and 100% bonus depreciation, and a doubling of estate tax exemption from $15 million to $30 million. And, for the next four years, tips and overtime pay would not be subject to federal tax.

Supporters argue these changes could reduce tax burdens and free up capital for hiring and expansion, critical for franchisees facing inflation and challenges in the labor market.

While the legislation’s broader impact continues to be debated, its small business tax elements have the potential to deliver tangible relief and growth opportunities across a wide range of industries.