Is ‘beauty’ in the eye of the beholder? It definitely seems to be the case for the contentious bill, One Big Beautiful Bill Act (H.R. 1)—yes, that is its actual name—which has passed in both houses of Congress and made it to President Donald Trump’s desk. After a protracted battle in and out of the halls of Capitol Hill, Trump signed it into law this past Fourth of July weekend. Regardless of where you land on the political spectrum, business and travel associations are touting this overall as a win for the business community. Here’s what associations are saying will help businesses and travel.
U.S. Chamber of Commerce
The business organization praised the bill for its “lasting, pro-growth tax reforms.”
“The final passage of the One Big Beautiful Bill Act is a landmark accomplishment. We applaud Congressional leaders for coming together to deliver meaningful, long-term tax relief for workers and businesses across the country. By laying the groundwork for sustained economic growth and enhancing America’s global competitiveness, this legislation provides businesses the certainty they need to invest long-term—driving productivity and raising wages for workers,” said President & CEO Suzanne Clark.
National Federation of Independent Business
The organization has called the permanent extension of the 20% Small Business Tax Deduction its top legislative priority to stop the small business tax hike. According to NFIB, nine out of 10 small businesses are organized as pass-through businesses and pay regular income tax rates rather than the C-corporation rate, and would have faced higher tax bills had H.R. 1 not passed. Additionally, they cited:
- Increases Section 179, Small Business Expensing Cap from $1.25 million to $2.5 million. This will allow small businesses to fully expense business equipment purchases in the first year.
- Increases and Makes Permanent the Small Business Estate Tax Exemption. The new exemption thresholds will be set at $15 million for individual filers and $30 million for joint filers.
“This is a landmark victory for America’s small businesses. By making the Small Business Tax Deduction permanent, Congress has delivered the certainty that Main Street needs, freeing small business owners to continue to create jobs, grow their business, and invest in their communities. Passing the One Big Beautiful Bill Act is a clear message that lawmakers understand the vital role small businesses play in our economy and our communities. We commend both chambers of Congress for coming together to pass this historic, pro-small business legislation and look forward to President Trump signing his Big, Beautiful Bill into law, delivering on a promise to provide permanent tax relief to over 33 million small business owners,” said President Brad Close.
U.S. Travel Association
The organization highlighted some key wins in the bill from a travel perspective, including:
- $12.5 billion to modernize the National Airspace System (NAS)—supporting updates to air traffic control technology, physical infrastructure and workforce development.
- Increased customs staffing to spur international growth and reduce wait times, including $4.1 billion to hire and train at least 5,000 new U.S. Customs and Border Protection (CBP) officers.
- Technology investments to strengthen border security and unlock future Visa Waiver Program (VWP) expansion.
- Homeland Security funding to prepare for upcoming global events like the 2026 FIFA World Cup and the 2028 LA Olympic and Paralympic Games.
“This legislation is a giant step in the right direction when it comes to improving America’s travel infrastructure and security. Bold, necessary investments in air traffic control and Customs and Border Protection will make a meaningful difference in the traveler’s experience,” said President & CEO Geoff Freeman.
Although Freeman was largely positive about the bill, he did express concern. "The smart investments in the travel process make foolish new fees on foreign visitors and reductions to Brand USA, America’s promotion arm, that much harder to swallow. Making America the world’s most visited destination—and capitalizing on the upcoming World Cup and Summer Olympics—requires smarter policy and legislative changes that we are already pursuing,” he said.
National Limousine Association: No Tax on Tips and Overtime
In addition to the restoration of bonus depreciation and enhancing Section 179 deductions, the National Limousine Association (NLA) has made these issues among the cornerstones of their lobbying efforts this year.
Here is what we know as of press time. The No Tax on Tips Act passed separately through the Senate with unanimous bipartisan approval and was added to H.R. 1 as a tax deduction (i.e., rebate) for employees who count tips as part of their income. While the bill does specify that the temporary deduction applies to the beauty and food services industries, the IRS and Treasury still need to determine if it will be expanded to include industries like chauffeured transportation. As it stands, tipped workers making up to $150,000 single/$300,000 jointly would be able to deduct up to $25,000 of their tips each year on their federal returns until it sunsets in 2028.
As for overtime, the income thresholds are the same, but the deduction is limited to $12,500. Additional clarifications will be issued by the IRS and Treasury.
While guidelines on the new deductions are hammered out, the NLA continues to fight for their members’ employees.
“There is still a lot to be hashed out. We are hopeful that the guideline is going to be ‘If you are normally a tipped worker now, it will apply to you.’ It would be on the first $25K of tips and $12.5K of overtime,” said NLA President Brett Barenholtz of Above All/Maine Limousine.
The full text of the bill is available here.
[07.08.25]
