NEWS | NSBA Joins Main Street in Support of HR1 for Small-Business Tax Provisions, NSBA Priority Issues

One Big, Beautiful coalition of support from Main Street on HR1, including critical tax provisions and NSBA Priority Issues supporting Small Business.

30 JUNE 2025 | Late last week, NSBA joined the nation’s leading advocacy groups representing Main Street in support and urging passage of H.R. 1, the One Big Beautiful Bill Act, including NSBA Priority Issue tax provisions added to the bill.

“Among the most significant provisions for these businesses are the permanent extension of the Section 199A deduction and the retention of the 37-percent top individual rate," the letter reads. "These measures reflect the need for a competitive and equitable tax structure that recognizes the importance of rate parity between pass-through businesses and C corporations, and helps ensure that these employers can continue to invest, hire, and grow.”

RELATED | Tax Extensions and Expanded Tax Support for Small Business Among NSBA Priority Issues for 119th Congress

Later this evening, lawmakers are expected to pass H.R. 1 out of the Senate, including these essential small-business tax terms, as well as certain provisions to retroactively deduct R&D expenditures dating back from 2022.

Following Senate passage, the bill will return to the House, where lawmakers are working to finalize the legislation and send it to President Trump’s desk on a self-imposed deadline of this Friday, July Fourth.

NSBA is closely monitoring developments and will continue to provide timely updates as this process unfolds. However, passage of these tax extensions is vital to maintaining a fair environment for America’s small businesses.

Read the full letter here and below, and contact your Members of Congress and urge them to support Main Street competitiveness today.

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June 28, 2025

The Honorable John Thune

Majority Leader

U.S. Senate

Washington, D.C. 20510

The Honorable Mike Johnson

Speaker

U.S. House of Representatives

Washington, D.C. 20515

The Honorable Mike Crapo

Chairman

Senate Committee on Finance

Washington, D.C. 20510

The Honorable Jason Smith

Chairman

Ways and Means Committee

Washington, D.C. 20515

Dear Leader Thune, Speaker Johnson, Chairman Crapo, and Chairman Smith:

The undersigned organizations, representing millions of Main Street businesses in every industry and community across the country, write in strong support of the budget reconciliation tax package recently released by the Senate Finance Committee.

This legislation builds on the foundation laid by the Tax Cuts and Jobs Act and advances a forward-looking, pro-growth tax agenda that supports tens of millions of Main Street enterprises. Critically, it would provide long-overdue certainty to the more than 95 percent of American businesses organized as S corporations, partnerships, and sole proprietorships -- businesses that employ a large majority of the private sector workforce and serve as the economic engine of communities nationwide.

Among the most significant provisions for these businesses are the permanent extension of the Section 199A deduction and the retention of the 37-percent top individual rate. These measures reflect the need for a competitive and equitable tax structure that recognizes the importance of rate parity between pass-through businesses and C corporations, and helps ensure that these employers can continue to invest, hire, and grow.

We also applaud lawmakers for their commitment to ensuring parity when it comes to the deductibility of state and local taxes (SALT) incurred by pass-through businesses. This recently-released draft rightly preserves their longstanding ability to deduct SALT expenses as an ordinary and necessary cost of doing business. This policy reflects a clear understanding that pass-through businesses should not be treated less favorably than their C corporation counterparts and reinforces the principle of equal treatment under the tax code.

Finally, we are pleased to see the inclusion of other critical incentives that will help drive investment and innovation -- provisions such as restoring full expensing, enhancing deductions for production property, easing the interest expense limitation, and reinstating immediate expensing for research and experimentation costs. These reforms represent meaningful progress toward a modern, growth-oriented tax code.

Taken together, these provisions represent a resounding victory for the Main Street business community. We support the package and urge its swift passage into law.

Sincerely,

AICC, The Independent Packaging Association

Air Conditioning Contractors of America

American Council of Engineering Companies

American Council of Independent Laboratories

American Farm Bureau Federation

American Foundry Society

American Hotel and Lodging Association

American Institute of Certified Public Accountants

American Mold Builders Association

American Pipeline Contractors Association

American Resort Development Association

American Staffing Association

American Subcontractors Association

American Supply Association

AmericanHort

Associated Builders and Contractors

Associated Equipment Distributors

Associated General Contractors of America

Automotive Service Association

Building Owners and Managers Association (BOMA) International

Energy Marketers of America

FCA International

Foodservice Equipment Distributors Association

Forest Resources Association

Forging Industry Association

ICSC

Independent Insurance and Brokers Association (Big “I”)

Industrial Fasteners Institute

International Foodservice Distributors Association

International Franchise Association

International Sign Association

Kansas Livestock Association

Main Street Employers Coalition

Metals Service Center Institute

Mortgage Bankers Association

National Apartment Association

National Asphalt Pavement Association

National Association of Convenience Stores

National Association of Electrical Distributors (NAED)

National Association of Home Builders

National Association of Insurance and Financial Advisors (NAIFA)

National Association of Wholesaler-Distributors

National Beer Wholesalers Association

National Cotton Council

National Electrical Contractors Association (NECA)

National Electrical Manufacturers Representatives Association (NEMRA)

National Grocers Association

National Lumber & Building Material Dealers Association

National Lumber and Building Material Dealers Association

National Ready Mixed Concrete Association

National Roofing Contractors Association

National Small Business Association

National Tooling and Machining Association

National Utility Contractors Association

National Wooden Pallet & Container Association

NATSO, Representing America's Travel Centers and Truck Stops

Nebraska Auto Body Association

North American Association of Food Equipment Manufacturers (NAFEM)

North American Die Casting Association

North American Equipment Dealers Association

Plumbing-Heating-Cooling Contractors - National Association

Power and Communication Contractors Association

Precision Machined Products Association

Precision Metalforming Association

PRINTING United Alliance

Private Investor Coalition

Recycled Materials Association

Renewable Fuels Association

S Corporation Association

Service Station Dealers of America and Allied Trades

SIGMA: America's Leading Fuel Marketers

Small Business & Entrepreneurship Council

Small Business Legislative Council (SBLC)

Textile Care Allied Trades Association

The Hardwood Federation

Tire Industry Association

Truck Renting and Leasing Association

Water and Sewer Distributors of America

Wine and Spirits Wholesalers of America