NACS sent a letter today to the House Ways and Means Committee Chairman Jason Smith (R-MO) in support of legislation the Chairman released on Monday evening reflecting the Ways and Means Committee’s contribution to the larger “Reconciliation Bill,” also known as the “One Big Beautiful Bill.” The Committee is scheduled to begin consideration of the legislation on Tuesday afternoon.

In the letter, NACS specifically cites a number of provisions important to the convenience retailing industry:

• 199A Qualified Business Income Deduction: The legislation makes the 199A Qualified Business Income Deduction used by pass-through entities permanent and increases it from 20% to 23%. The deduction is currently scheduled to expire at the end of the year. This important change forestalls a potentially devastating tax increase and helps bring family businesses into closer parity in the tax code with their corporate competitors.
• Bonus Depreciation: The legislation also returns the “Bonus Depreciation” level back to 100% expensing for qualified purchases made between January 19, 2025 and December 31, 2029. That provision, originally included in the 2017 tax law, has begun phasing down and is scheduled to expire entirely at the end of this year. The bill also increases the expensing threshold under section 179 from $1 million to up to $2.5 million.
• Death Tax Threshold: The letter also notes industry support for increasing the “death tax” threshold to $15 million, an increase from $13.99 million. NACS cites the importance of including depreciation and amortization in the calculation of adjusted taxable income for the 2025 to 2029 tax years. That calculation limits the ability of businesses to deduct business interest expenses. Allowing depreciation and amortization as part of that calculation would reduce the negative impact of the limits on that deduction.
• Biodiesel Blenders Tax Credit: NACS also noted its support for a two-year extension of the biodiesel blenders tax credit which expired at the end of 2024. Reinstating the credit would help alleviate the significant market disruptions currently experienced due to its expiration. Such an extension is not currently included in the package.

Overall, the total estimated cost of the package is roughly $4 trillion, short of the maximum amount the committee was allowed to spend under the budget rules of $4.5 trillion.

The Ways and Means legislation is part of a much larger package involving work products from 11 different Congressional Committees. Once all of the committees have passed their respective pieces, then the House Budget Committee will compile them into what would be the final “One Big Beautiful Bill,” which would be sent to the House Floor for final consideration.

The final package must have at least $1.5 trillion in spending reductions and may have up to $4.5 trillion in spending increases, almost all in the form of tax cuts. If the House agrees to that complete package, then it would move to the Senate where changes may be made and it can be passed with a simple majority vote, bypassing any filibuster effort. If the Senate makes changes, the bill can either be sent back to the House or the two Chambers can form a Conference Committee to work out differences before moving to final passage. The President seeks to have the bill reach his desk by July 4.