The ‘One Big, Beautiful Bill’ is set to be signed by President Donald J. Trump and includes tax policies aimed at boosting the restaurant and foodservice industry. These measures are designed to enable restaurant owners across the United States to create jobs, invest in their businesses, and provide economic stability in their communities.
Michelle Korsmo, President & CEO of the National Restaurant Association, stated, “The restaurant industry is a powerful economic engine – generating over $1.4 trillion in annual economic activity and employing more than 15 million people nationwide.” She added that the bill's pro-growth tax policy will facilitate starting new restaurants and improving existing ones, promoting long-term innovation and job creation.
Key elements of the bill include President Trump's No Tax on Tips and No Tax on Overtime provisions. These offer additional tax deductions for tipped servers, bartenders, and hourly employees earning overtime pay. Korsmo highlighted that for four years, servers and bartenders can deduct $25,000 of their tips from federal taxes while hourly employees can benefit from a $12,500 deduction for premium overtime pay.
The bill contains several other significant tax provisions:
- Full expensing for capital equipment purchases allows operators to invest in equipment or refurbish dining areas while managing payroll.
- A 20% qualified business income (QBI) deduction supports investments for pass-through businesses, reducing their effective tax rate.
- Business interest expense deduction restores depreciation and amortization calculations.
- Permanent family and medical leave tax credits support paid leave offerings.
- Estate tax relief aims to ease transitions within family-owned restaurants.
Korsmo emphasized that these changes are vital for maintaining a dynamic industry. “These provisions aren’t just a win for restaurant operators—they’re a win for the people we employ, the guests we welcome, and the communities that count on us every day,” she said.