After extensive debate, the House has advanced the One Big, Beautiful Bill Act with a narrow vote of 215-214. This legislative package, which includes tax and spending provisions, is now eligible for simple majority passage in the Senate through the reconciliation process. The National Small Business Association (NSBA) has expressed support for Congress's actions on several priority issues that aim to bolster small businesses.
The bill includes expansions and permanencies for Qualified Business Income (QBI) and Section 199A tax deductions. It also extends President Trump's first-term tax cuts, which are set to expire on December 31. Additional measures provide further tax relief by raising state and local tax deductions to $40,000 and temporarily exempting tips and overtime pay from taxes. Furthermore, the bill proposes an increase in the debt ceiling by $4 trillion.
House appropriators have outlined their schedules to complete the standard 12 fiscal 2026 spending bills within the next ten weeks. Meanwhile, Senate leaders have indicated a willingness to make additional changes to the reconciliation package, including possibly dividing it into separate components. Despite these potential adjustments, there is growing bipartisan support for extending and expanding critical tax provisions included in the House-passed bill.
The NSBA continues to advocate for members of Congress who recognize the significance of enacting these priority issues, particularly those related to tax deductions vital for a thriving economy driven by small businesses.
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