The American Society of Travel Advisors (ASTA) expressed support for legislation advanced by the House Ways and Means Committee that would make the Section 199A tax deduction permanent while increasing it from 20% to 23%.
The deduction, created under the 2017 Tax Cuts and Jobs Act, allows eligible businesses including many travel agencies to deduct a percentage of their qualified business income, reducing their overall tax burden. It is currently set to expire at the end of 2025.
Zane Kerby, president and CEO of ASTA, said the deduction has "allowed for substantial tax savings" for many of the organization's members who are small business owners.
"Our members overwhelmingly reported in a recent survey that if the Section 199A deduction is allowed to expire, the increased tax burden would significantly impact their business," Kerby said.
According to ASTA, approximately half of all travel advisors qualify for the deduction as independent contractors or self-employed individuals. In a survey of members who use the deduction, 87% reported it was either moderately significant (21%) or very significant (66%) in reducing their tax liability.
The tax package also expands qualified expenses under 529 savings plans to cover postsecondary training and credentialing, including licenses and certifications such as ASTA's Verified Travel Advisor program.
ASTA says it supports this provision as part of the Freedom to Invest in Tomorrow's Workforce Act, which would provide tax-advantaged resources to workers pursuing career advancement.
"We applaud Congress for proposing to allow travel advisors to invest their 529 funds in continuing education to take their small businesses to the next level," Kerby said.
Editor's Note: This article was generated by AI, based on a press release distributed by the American Society of Travel Advisors. It was fact-checked and reviewed by a TravelAge West editor.
