The American Financial Services Association (AFSA) announced on its website that it has signed a letter supporting a House reconciliation bill aimed at strengthening tax provisions for small and family-owned businesses.
The “One Big Beautiful Bill Act,” passed by the U.S. House of Representatives on May 22, 2025, seeks to extend and expand key provisions of the 2017 Tax Cuts and Jobs Act (TCJA). According to the Bipartisan Policy Center, the bill aims to provide long-term tax relief and certainty for small and family-owned businesses by reinforcing measures beneficial to Main Street enterprises. The legislation includes enhancements to the Section 199A pass-through deduction, reinstatement of full expensing for research and development (R&D) costs, and 100% bonus depreciation for qualified property.
According to the Tax Foundation, the bill proposes making the Qualified Business Income (QBI) deduction under Section 199A permanent and increasing its size to 23 percent starting in 2026. This deduction, initially established by the TCJA, allows eligible taxpayers to deduct a portion of their business income, providing significant tax relief to pass-through entities such as sole proprietorships, partnerships, and S corporations. These changes aim to enhance the deduction’s value and provide additional certainty for business owners.
The legislation reinstates 100% bonus depreciation for property placed in service after January 19, 2025, through December 31, 2029. This provision allows businesses to immediately deduct the full cost of qualifying property, such as machinery and equipment, in the year it is placed in service rather than depreciating it over several years. Kaufman Rossin states that this measure is designed to stimulate business investment and economic growth by improving cash flow for companies.
AFSA was founded in 1916 and is based in Washington, D.C. It serves as the national trade association for the consumer credit industry. AFSA represents a broad spectrum of financial services companies that offer credit and related services to consumers and small businesses.
