The Issue: While Wall Street received permanent tax relief in the 2017 Tax Cuts and Jobs Act, Main Street businesses face a significant tax increase when the bill’s temporary policies for pass-through businesses expire at the end of this year. Pro-growth provisions should be made permanent to maintain competitive tax policy.

Why It Matters: Tax certainty is important to multi-generational, family-owned businesses like NBWA members, the vast majority of which are organized as S-Corps. Without further action from Congress, beer and beverage distributors as well as other local businesses face a tax increase that will hurt their ability to:

Compete With Wall Street and Create Jobs

• If these provisions expire, NBWA members will need to forego critical investments in hiring workers, building warehouses and purchasing equipment.

Invest in Their Communities

• When distributors purchase new vehicles or equipment and raise wages for workers, those investments go directly into the local economy — supporting jobs and growth.

Key pro-growth provisions that should be made permanent:

1. Temporary Pass-Through Deduction: Section 199A (Expires end of 2025)
2. Adjusted Estate Tax Exemption (Expires End of 2025)
3. Bonus Depreciation & Interest Deductibility (Bonus Depreciation being phased out now; will be fully phased out by 2027)