The American Society of Travel Advisors (ASTA) is celebrating its policy victories with the recent passage of President Trump’s budget reconciliation bill, aka the One Big Beautiful Bill Act. ASTA says it does not have a position on the overall content of the bill but applauds two provisions that the organization advocated for on behalf of U.S. travel advisors.
Section 199A Deduction Made Permanent
The bill makes permanent Section 199A, which allows many small businesses, including independent travel advisors, to deduct 20% of their qualified business income. The updated law — which was set to expire at the end of the year — raises the income limits to $75,000 for individuals and $150,000 for couples filing jointly. The provision guarantees a minimum $400 deduction (adjusted for inflation) for anyone earning at least $1,000 in active business income.
"Travel advisors pour their profits into customer service, technology and education," said Jessica Klement, ASTA’s Vice President of Advocacy. "Making the tax deduction permanent provides certainty so they can keep innovating for travelers.
ASTA advocated for an extension of the provision throughout the year and was hoping to increase the deduction to 23%. The deduction was created under the 2017 Tax Cuts and Jobs Act and has "allowed for substantial tax savings" for advisors, according to ASTA.
In a release earlier this year, ASTA shared that about half of all travel advisors qualify for the deduction as independent contractors or self-employed individuals. In a survey of members who use the deduction, most (87%) said it was either moderately significant (21%) or very significant (66%) in reducing their tax liability.
529 Plans Reimagined as “Career Savings Accounts”
ASTA also supported the bill’s inclusion of postsecondary training and credentialing as qualified expenses under 529 savings plans, which are tax-advantaged accounts typically used for college savings.
This provision allows workers to pursue mid-career changes by using funds for programs such as ASTA’s Verified Travel Advisor certification.
“Expanding the permissible use of 529 plan funds beyond traditional college costs means professionals can choose the training that best suits their goals," Klement said. "It is a commonsense update that will strengthen the travel advisor profession."
Last week, the U.S. Travel Association shared mixed feelings about the bill, celebrating expansions of travel infrastructure and security programs, while criticizing the slashing of Brand USA’s budget and the increase of non-immigrant visa fees, including a new $250 Visa Integrity Fee for visitor visas and a $40 Electronic System for Travel Authorization fee.
