The House Ways and Means Committee has introduced a legislative framework that would make the 199A tax deduction permanent, increasing the deduction from 20% to 22%, and making an enhanced estate tax exemption permanent — providing much-needed certainty and stability to America’s family-owned businesses.
Created under the 2017 Tax Cuts and Jobs Act, Section 199A has enabled thousands of family-owned wine and spirits wholesalers to reinvest in their people warehouses, fleets, technology and local communities, according to Wine & Spirits Wholesaler of America. By increasing the deduction to 22% and making it permanent, the proposal ensures those businesses can plan with greater certainty — especially in the face of rising costs, increasing competition and shifting markets.
The proposed permanence of the enhanced estate tax exemption acknowledges the unique generational challenges of operating family-owned businesses and protects the economic value they create in communities across the country.
“This is an encouraging first step that recognizes the critical role of family-owned businesses to the economy,” said Francis Creighton, WSWA’s president and CEO, in a news release. “We look forward to reviewing the full legislative language and urge Congress to keep family-owned businesses front and center as they continue through the reconciliation process.”
