Congress Listens When Message is Constant and Consistent; ‘One Big Beautiful Bill’ Shows Congress Heard Us

Educating Voters and Congress Pays Off for Family-owned Businesses

It’s never easy working with Congress. It’s a chaotic, ever-changing landscape that keeps any organization on its toes. But it pays off if the messages are constant and consistent.

Working with Congress on the critical tax and economic policies affecting family-owned businesses paid off big time on July 4 with the passage of the One Big Beautiful Bill Act (H.R. 1).

With the bill signed into law, family-owned businesses are now digesting what it means for our businesses and what new messages and pressure are needed to make sure these hard-fought policies wins don’t get reversed in the next round of elections.

Though much has been written and talked about in the media, here’s the checklist of wins we at Family Enterprise USA, the Policy and Taxation Group, our teams on Capitol Hill, and the many family-owned business leaders helped to bring about with House and Senate members. 

It should be said that much of our work was done behind the scenes on Capitol Hill, working with House Tax Teams, working with individual House and Senate members, and educating them on tax and economic issues affecting family-owned businesses.

Here are the key provisions, and wins for family businesses, in the bill:

 TCJA Extension: The bill makes permanent or extends several expiring provisions from the 2017 Tax Cuts and Jobs Act (TCJA), including making permanent the individual income tax rates enacted by TCJA. The bill does not include a new bracket for high-income individuals.

Estate and Gift Tax: The bill permanently increases the estate and gift tax exemption level to $15 million from $14 million, beginning after December 31, 2025, and indexes the increase to inflation. The bill avoids the eliminating of valuation of discounts for Estate Tax purposes.

Section 199A Pass-Through Deduction: The bill makes permanent the 20% Section 199A qualified business income deduction, among several other changes, which helps level the tax playing field versus lower corporate tax rates.

Capital Gains Tax Rate: No modifications or increase in the top Capital Gains tax rate.

R&D Expensing and Bonus Depreciation: Restores research and development expensing, allowing businesses to immediately deduct 100% of the cost of certain short-term investment and machinery from their taxable income in the first year rather than over fixed intervals (e.g., equipment interest). The legislation also permanently restores 100% bonus depreciation, effective January 20, 2025.

Like Kind Exchanges: No modifications to and maintenance of Like Kind Exchanges.

Wealth Tax: Avoided the establishment of a Wealth Tax or Surtax on income.

Alternative Minimum Tax: The bill makes permanent TCJA’s increase in the alternative minimum tax (AMT) exemption but reverts the exemption phaseout thresholds to 2018 levels. The reversion may result in additional individuals being subject to the AMT and therefore excluded from claiming the SALT deduction.

Grantor Trusts and Step-Up in Basis: Avoided and no modifications to Grantor Trusts and avoided elimination of Step-Up in basis.

Deductibility: The bill restores the EBITDA (earnings before interest, taxes, depreciation, and amortization)-based limitation on the net business interest deduction effective December 31, 2024.

 ‘Legacy & Longevity’ Spotlight for Sept 17 Caucus

Family-owned business leaders will gather on Capitol Hill on Sept. 17 for the third meeting this year with members of the Congressional Family Business Caucus. 

The theme for this last meeting of 2025 is “Legacy & Longevity – How Congress Can Support the Next Generation of Family Businesses.”

At the meeting, family business leaders from around the country will share their personal stories about the challenges of Maintaining Legacy and Longevity affected by legislation.

The breakfast gathering begins at 8AM in the Capital Building’s Visitor Center and will start with a panel discussion from the family business leaders about managing the transition from one generation to the next. In addition, the panel members will discuss the tax and economic challenges involved with transitions, and how Congress, and members of the Caucus, can help with this process. 

This will be followed by a legislative and political update by experts from Brownstein and Squire Patton Boggs, a “What Now?” presentation from political and communications consultant Dr. Frank Luntz, and a presentation on “Family Business Tax Concerns” by Bobby Stover, Americas Family Enterprise and Family Office Leader for EY.

These presentations are followed by breakout groups of family businesses visiting directly with Congress members and their staffs in their private offices.

These group and private meetings are critical in continuing to make family businesses heard on Capitol Hill, and it makes a huge difference in guiding policy that helps the number one private employer in the country, family-owned businesses.

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