The National Restaurant Association has expressed approval following the U.S. House of Representatives' passage of H.R. 1, known as 'The One, Big, Beautiful Bill Act.' Michelle Korsmo, President and CEO of the association, released a statement highlighting the legislation's significance for restaurant owners, employees, and their communities.
"This legislation is a major victory for restaurant owners, employees, and the communities they serve," Korsmo stated. She noted that the bill includes essential tax provisions aimed at promoting industry growth. These provisions involve the 199A qualified business income deduction, full expensing of capital investments, and reinstating depreciation and amortization in calculating business interest expenses. Such measures are considered vital for businesses to maintain sufficient working capital for payroll management and coping with rising supply costs.
Korsmo also pointed out the benefits from specific provisions such as "No Tax on Tips" and "No Tax on Overtime," which acknowledge the contributions of the workforce. More than two million tipped servers and bartenders could benefit from these changes alongside over 13 million hourly team members across the sector who will be rewarded for their commitment.
She emphasized that tax policy plays a critical role in small business survival, particularly within restaurants where pre-tax margins are typically between three to five percent. The inclusion of supportive policies resulted from collective efforts by National and State Association members—restaurant owners, industry advocates, and employees—who shared impactful stories with House members about how these changes could positively affect businesses and local economies.
"We’re grateful for the strong policy provisions and look forward to collaborating with the Senate as the process moves forward," Korsmo concluded.
