Congress Passes Long-Sought Tax Relief

The Senate version of the budget reconciliation bill passed the House of Representatives on a 218-214 vote Thursday, July 3, delivering critical tax relief that business advocacy groups have been pursuing for several years.

Only two Republican congressmen, Reps. Thomas Massie (R-KY) and Brian Fitzpatrick (R-PA), joined all Democrats to oppose the bill. That left Speaker Mike Johnson (R-LA) with enough votes to pass the bill, despite initial concerns from many in his party over the Senate’s amendments to the legislation, which increased the projected budget deficit from $2.4 trillion over a decade to $3.3 trillion.

The final version of the One Big Beautiful Bill Act included several key provisions that were sought by business advocacy groups to prevent a tax increase that would have otherwise occurred at the end of the year if the 2017 Tax Cuts and Jobs Act were allowed to expire. Those provisions include:

• Making the Section 199A deduction for pass-through businesses permanent
• Increasing the estate tax exemption to $30 million, ensuring family businesses can plan for the future without punitive tax burdens
• Making the expensing of research and development costs permanent
• Making permanent the 100 percent bonus depreciation, enabling businesses to invest confidently in the equipment and infrastructure needed to grow
• Preserving last-in, first-out (LIFO) inventory accounting
• Preventing tax increases on C corporations
• Stopping efforts to raise the individual tax rate

“The passage of the One Big Beautiful Bill Act is a major victory for America’s businesses and workers,” said Eric Hoplin, president and CEO of the National Association of Wholesaler-Distributors (NAW). “We’re grateful to the president for delivering on his promise to support small businesses and grow the economy, and we’re proud to have worked alongside leaders in both the House and Senate to make this possible. This bill delivers real, lasting relief — lower taxes, pro-growth policies and critical protections for family-owned companies.”