WASHINGTON—The American Hotel & Lodging Association (AHLA) praised the U.S. House Ways and Means Committee for advancing key tax provisions in the Budget Reconciliation package that are vital to the hospitality sector.
“We commend Chairman Jason Smith and the Committee for their leadership on this critical legislation,” said AHLA President & CEO Rosanna Maietta. “Businesses need certainty and predictability to run effectively and efficiently and create jobs. Without an extension of expiring provisions from the Tax Cuts and Jobs Act, thousands of hotel owners – most of them small business operators – would face steep tax hikes in 2026. Today’s vote moves us closer to providing the certainty our industry needs to support millions of jobs and local economies nationwide. We urge Congress to act quickly and send this bill to President Trump’s desk.”
With the Tax Cuts and Jobs Act set to expire, AHLA has called for the inclusion of several essential provisions to protect hotel operators, employees, and related industries:
- Makes the Small Business Deduction Permanent: Most hotel owners are independent small business operators who license well-known brands. Losing this deduction would significantly raise their taxes, stifling reinvestment in their businesses and employees.
- Extends Bonus Depreciation for Five Years: This provision supports capital improvements and job creation across construction, manufacturing, and service sectors – key drivers of hotel modernization and guest experience.
- Preserves the Like-Kind Exchange (Section 1031): This provision allows property owners to reinvest in communities and create jobs by deferring capital gains taxes. Any cap or repeal would chill real estate investment and economic growth.
- Reinstates Expanded Business Interest Deductibility for Five Years: Returning to expanded business interest deductibility (e.g., “EBITDA fix”) corrects higher tax rates and increased financing costs that businesses have faced over the last several years.
- Launches a Second Round of Opportunity Zones: The Opportunity Zone program has helped encourage investment in communities across America. Extending this program will continue to drive capital investment and economic opportunity.
- Raises the Estate Tax Exclusionary Amount: The expiration of the higher exclusionary amounts presents major challenges to family businesses undertaking estate planning. The provisions help enable family-run businesses to pass on the business without high tax burdens.
AHLA also supports President Trump’s proposed “No Tax on Tips” legislation, which would help thousands of hotel employees, from housekeepers and valets to food service and spa professionals, keep more of their hard-earned income.
“The hospitality industry is a cornerstone of the U.S. economy,” Maietta added. “Passing these tax policies swiftly ensures continued investment, job creation, and community development across the country.”
