‘Big Beautiful’ Tax Breaks for Insurance Agents in Bill Passed by House, Says Big I

The Independent Insurance Agents and Brokers of America celebrated a “significant victory” for independent agents with the passage of a sweeping tax bill this week by the House of Representatives.

The so-called “Big Beautiful Bill” of tax reform makes much of the 2017 Tax Cuts and Jobs Act (TCJA) permanent, said the trade association known as Big “I”.

The tax cuts signed into law during President Trump’s first term were set to expire at the end of 2025. They include a deduction, referred to as the Section 199A deduction, on qualified business income for pass-through entities (sole proprietorships, partnerships, limited liability companies, and S-corporations). The Big “I” said 86% of independent agencies are structured as qualified pass-through entities.

The latest bill increases the deduction from 20% to 23%, reported Big “I”.

“This critical legislation builds upon the success of the TCJA by supporting Main Street America—the communities, businesses and individuals who are the backbone of our country,” said Charles Symington, Big “I” president and CEO, in a statement. “We are particularly thankful that this legislation preserves and strengthens the 199A deduction, which so many independent agencies have come to rely upon to better serve their communities.”

The bill also makes the individual tax rates permanent, while modifying the inflation adjustment mechanism for the various brackets. The bill does not make changes to the corporate rate, Big “I” explained.

The measure now moves to the Senate.

The Big “I” said it commended Speaker of the House Mike Johnson (R-Louisiana), House Republican Leadership, and Ways and Means Chairman Jason Smith (R-Missouri) for their work in moving the legislation forward.

Topics Agencies