Ahead of next year’s major tax debate, IFA issues top tax priorities critical to franchised small businesses

WASHINGTON – The International Franchise Association (IFA) today urged the U.S. House Ways and Means Committee, the top congressional tax writing committee, to consider a number of provisions critical to franchised small businesses during the forthcoming tax debate. In a formal letter to the committee, IFA shared its key priorities as major tax changes approach at the end of 2025 with the expiration of many provisions of the Tax Cuts and Jobs Act (TCJA). 

“Without congressional action, local franchises will face a significant tax overhaul that could severely impact their businesses,” said Michael Layman, IFA senior vice president for government relations and public affairs. “It is imperative that Members of Congress keep small business owners like franchisees, and the challenges they face, top of mind as they face this looming tax cliff. Local franchises support nearly every community in America, and we need to ensure Main Street is treated fairly so these businesses can continue to grow and serve their customers.”

In the letter, IFA lays out the top priorities for franchised businesses, including: 

• Making permanent the Section 199A deduction for pass-through businesses to provide certainty to small businesses 
• Restoring 100% bonus depreciation to better allow businesses to make investments that will boost wages and increase hiring
• Enhancement of the Work Opportunity Tax Credit (WOTC) to encourage hiring from underserved communities
• Expanding interest deductibility to support capital investments, growth, and job creation 
• Expansion of the foreign-derived intangible income incentive to keep innovation and intellectual property development here in the United States.
• Continuation of the veteran tax credit to lighten the financial burden for veterans to start their own business
• Permanence of the TCJA estate tax provisions to provide certainty for business owners and their families

The letter follows hundreds of franchisors, franchisees, and suppliers coming to Washington in September to meet with their Members of Congress, urging them to prioritize small businesses especially America’s 800,000 local franchises, as they craft new tax policy. In particular, they stressed the importance of Section 199A, 100% bonus depreciation, and the Work Opportunity Tax Credit to franchised businesses.

Further, a number of franchisees have participated in listening sessions this year with members of the Ways and Means Committee including FASTSIGNS franchisee Jon Toy, Sport Clips franchisee Bill Riiff in Pennsylvania, Express Employment franchisees Inge and Elizabeth Beeker and staff members Kaylynn (Scooter) Pruitt and Hanah Greene in Alabama, FASTSIGNS franchisees Mark and Shawn Glenn in Dallas, TX.