“Big, Beautiful Bill” budget reconciliation legislation includes several small business tax priorities essential to providing tax relief for local franchises; Bill now heads to U.S. Senate

WASHINGTON – The International Franchise Association (IFA) today applauded U.S. House of Representatives passage of its budget reconciliation legislation that includes major tax priorities for franchised small businesses, championed by IFA. Without passage of this legislation, small business owners, including America’s 831,000 franchise owners, stand to face a major tax increase at the end of the year.

“This legislation represents an exciting step forward for America’s Main Street economy,” said Michael Layman, IFA Chief Advocacy Officer. “These tax provisions will provide long-term certainty, ease operational burdens, and fuel growth for franchise owners across the country. From local restaurants to home services and childcare centers, franchise businesses support millions of jobs—and this bill gives them the tools to keep hiring, expanding, and serving their communities. We applaud the House for taking this step and urge the Senate to act quickly.”

This legislation includes several priorities for franchise small businesses, including:

• 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 from $15M to $30M
• No tax on tips and no tax on overtime for four years

Addressing expiring tax provisions remains a top priority for the franchise community, as addressed in IFA’s Roadmap for Franchise Growth, released at the start of the Congress.

Last week, franchisors and franchisees testified before the U.S. House Small Business Committee, advocating for passage of tax relief provisions, most of which were included in the House legislation. That hearing followed 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 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.