Emphasis placed on preserving Section 199A and restoring 100% bonus depreciation, both critical to small businesses on Main Street and their employees

Washington, D.C. – Today, Jerry Akers, a multi-unit franchisee from Iowa and board member of the International Franchise Association (IFA), testified before the Joint House and Senate Small Business Committee hearing, “Prosperity on Main Street: Keeping Taxes Low for Small Businesses.” Akers reminded lawmakers that franchising is small business, and he called on them to extend the 2017 Tax Cuts and Jobs Act (TCJA), emphasizing the importance of making the Section 199A deduction for qualified business income permanent.

“A franchise is first a local business. These local businesses rely on the passthrough deduction to reinvest in their operations, create jobs, and support local economies,” Akers, who along with his family, owns 33 Great Clips locations and four Joint Chiropractic locations across Iowa and Nebraska, stated. “The 199A tax deduction has been an important lifeline, enabling me and almost all franchisees to increase investment in business, driving growth and innovation, while the extra financial breathing room has allowed us to hire more employees and provide better benefits to existing team members.”

Read Akers’ full testimony here.

The Section 199A deduction allows passthrough businesses to deduct 20% of qualified business income. Unlike corporate tax reductions, this deduction is set to expire after 2025 unless Congress intervenes.

IFA’s 2025 Roadmap for Economic Growth, which outlines the top policy priorities for the franchise community, called for extending the TCJA.

“Franchising drives the U.S. economy, employing 8.8 million Americans and contributing nearly $900 billion annually,” said Michael Layman, Chief Advocacy Officer for IFA. “Preserving Section 199A is essential to maintaining economic growth and protecting Main Street jobs, and we intend to educate lawmakers on both sides of the aisle on its continued importance.”

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About the International Franchise Association:

Celebrating over 60 years of excellence, education, and advocacy, the International Franchise Association (IFA) is the world’s oldest and largest organization representing franchising worldwide. IFA works through its government relations and public policy, media relations, and educational programs to protect, enhance and promote franchising and the approximately 831,000 franchise establishments that support nearly 8.8 million direct jobs, $896.9 billion of economic output for the U.S. economy, and almost 3 percent of the gross domestic product (GDP). 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.

 

Press Contact

Katherine Knight Patterson
Katherine Knight Patterson

VP, Communications

202.662.0783

kpatterson@franchise.org

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