WASHINGTON, D.C., July 3, 2025 – Today, the United States House of Representatives passed the “One Big Beautiful Bill” (OBBB) on a 218-214 vote after the U.S. Senate passed it a few days prior on a 51-50 vote. Vice President J.D. Vance provided the tiebreaking vote in the Senate. President Trump is expected to sign it into law in the coming days. This legislation includes many tax provisions that would make it easier for many small businesses to thrive. The vast majority of auto repair shops and members of the Automotive Service Association (ASA) are small independent businesses.

Since 2017, businesses registered as sole proprietorships, S corporations, or partnerships have been allowed to deduct 20 percent of qualified income for tax purposes. This deduction, known as the Section 199A deduction, will expire at the end of 2025 if Congress doesn’t act. The OBBB will make the deduction permanent. It will also allow businesses to deduct 100 percent of investments in certain machinery and equipment for the tax year of the expenditure, thereby avoiding depreciation. This provision could benefit many repair shops that will have to spend significantly on new equipment, tools, machinery, and other costly investments to order to adapt to new vehicle technologies.

Current incentives for electric vehicle (EV) purchases and production have led to a sudden surge in EVs on the road. As mentioned above, adapting to this technology requires investments that many repair shops struggle to afford. The OBBB would result in a more gradual and manageable increase in EVs on the road by eliminating nearly all tax credits on consumer EV purchases. It would also eliminate approximately 50 percent of EV manufacturing incentives. Consumers stand to benefit from this tax package as well. Individuals who purchase a new car, assembled in the United States, between now and the end of 2028 and report less than $100,000 in their tax filing will be able to deduct up to $10,000 in car loan interest payments until the end of the 2028 tax filing year.

The OBBB also contains win-wins for employees and their employers. Employees with less than $150,000 in annual income will be able to deduct up to $12,500 in overtime compensation for all tax years 2025 through 2028. Additionally, it will make permanent the tax credit incentive for small businesses to provide paid family and medical leave to their employees, including in states that require businesses to provide such leave. Furthermore, this bill will provide generous incentives for businesses to help provide childcare to their employees by providing employers a tax credit of up to $500,000 on up to 40% of the childcare support provided to employees, and $600,000 and 50% respectively for small businesses.

Republicans in Congress found a compromise on state and local tax (SALT) deductions. For tax years 2025 through 2028, the OBBB will increase the cap on SALT deductions from $10,000 to $40,000 for married couples with less than $500,000 in income. It also keeps the current rules for business SALT deductions in place.

ASA applauds Congress and President Trump for passing comprehensive tax legislation that prioritizes the needs of small businesses. The One Big Beautiful Bill will provide independent automotive repair shops much needed financial relief and a more predictable business planning path moving forward.

 ASA is the largest and oldest national organization committed to protecting the automotive repair industry with ONE VOICE. We are the only trade association whose board is comprised solely by collision and mechanical automotive repairers. Our members own and operate repair facilities responsible for the majority of all, post warranty, repair services in the United States. ASA advocates for the interests of its members and their customers in Washington, D.C. The education, resources, and services ASA provides empowers its members in all 50 states to remain trusted stewards of mobility in their communities. www.ASAShop.org