After U.S. House passage, budget reconciliation package now heads to President Trump’s desk, delivering long-awaited tax relief and growth opportunities for franchise small businesses

WASHINGTON, D.C. – The International Franchise Association (IFA) today celebrated final congressional passage of the “One Big, Beautiful Bill,” a sweeping budget reconciliation measure that includes several top priorities championed by IFA to deliver critical tax relief for America’s 831,000 franchised small businesses. Final passage takes place less than a week after nine franchise owners from around the country, along with IFA President and CEO Matt Haller, were invited by President Donald Trump to a White House event urging Congress to move forward with the legislation.

“Today’s House vote caps a major victory for franchise small businesses and the millions of workers they support,” said Haller. “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.”

The bill passed the U.S. House of Representatives today following Senate approval on Tuesday, and now heads to President Donald Trump’s desk for his signature.

The bill includes several franchise-focused provisions, including:

  • 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)

Addressing these tax provisions has been a top priority for the franchise community, as outlined in IFA’s Roadmap for Franchise Growth, released at the start of the Congress.

This spring, franchisors and franchisees testified before the U.S. House Small Business Committee, following Iowa franchisee Jerry Akers’ testimony in April, stressing the importance of the Section 199A provision to small 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 nearly 3 percent of GDP. IFA members include franchise companies in over 300 business format categories, individual franchisees, and suppliers supporting 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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