OBBB Act Delivers Major Tax Relief for WFCA Members

President Trump’s signing of the One Big Beautiful Bill (OBBB) Act has delivered significant and lasting tax relief to small business owners in the flooring industry — a major win for members of the World Floor Covering Association (WFCA).

As many WFCA members know, most flooring dealers operate as Subchapter S corporations or Limited Liability Companies (LLCs). These pass-through entities don’t pay corporate income tax; instead, their taxable income “passes through” to the business owner’s personal tax return. Since 2018, Section 199A of the Tax Cuts and Jobs Act (TCJA) has allowed qualifying pass-through businesses to deduct up to 20% of their Qualified Business Income (QBI) when calculating their federal tax liability. However, this provision was scheduled to sunset at the end of this year without new legislation.

The recently passed OBBB Act not only extends Section 199A — it makes the QBI deduction permanent. This ensures long-term tax certainty for small business owners across the country, particularly in industries like flooring, where pass-through businesses dominate. The updated legislation also expands the phase-in thresholds for deduction limitations: from $50,000 to $75,000 for single filers, and from $100,000 to $150,000 for joint filers. These increases reduce the impact of restrictions on Specified Service Trades or Businesses (SSTBs) and other entities subject to the wage and capital investment limitations.

In addition, the OBBB introduces a new, inflation-adjusted minimum deduction of $400 for taxpayers who have at least $1,000 of QBI from one or more active trades or businesses in which they materially participate. This change ensures that even the smallest qualifying businesses receive a guaranteed baseline deduction.

While a wide range of industries will benefit from the 199A extension, few are as significantly impacted as the flooring industry, which consists largely of small, pass-through businesses. Over the past two years, WFCA has actively advocated for permanent, pro-small-business tax policy — meeting with lawmakers, participating in policy discussions, and emphasizing the importance of Section 199A to the health of the industry.

The passage of the OBBB reflects the value of that advocacy. It is a meaningful legislative success that will provide financial stability and growth opportunities for WFCA members across the country.

To see all of the legislative updates from WFCA, click here.