IFA Applauds Committee Passage of Small Business Tax Provisions

Legislation passed U.S. House Ways and Means Committee with provisions essential to protecting franchise small businesses; IFA urges full Congress to swiftly pass the bill

WASHINGTON – Michael Layman, Chief Advocacy Officer for the International Franchise Association (IFA), issued the following statement after the U.S. House Ways and Means Committee passed major tax legislation to protect small businesses:

“IFA applauds passage of the Ways and Means Committee’s tax legislation, which will invigorate the American small business economy. This bill includes several provisions that have proven to be lifelines for franchise owners and will prevent a tax increase at a time when they need support most. Franchise small businesses are a vital engine of the American economy, supporting millions of jobs and serving communities across the nation, and this legislation will allow them to thrive, invest, and create more opportunities.”

This legislation includes the following provisions critical to Main Street franchise owners:

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.
The inclusion of no tax on tips and overtime for four years that provides specific relief to the restaurant and beauty industries.

Layman continued, “We urge the full House of Representatives to swiftly pass this bill to provide a more stable and predictable tax environment for the continued success of franchise businesses.”

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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 830,000 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.