While ASTA offered no overall position on the Trump administration's budget bill signed into law on July 4, the Society pointed to two victories it had been lobbying for: a tax break for advisors was made permanent and flexibility was increased for education savings accounts.
The bill makes permanent a tax break known as the Section 199A deduction. Small businesses can deduct 20% of their qualified business income. The tax break was originally set to expire at the end of the year.
According to ASTA, the law has been updated to raise income limits to $75,000 for individuals or $150,000 for couples filing jointly. It also guarantees a minimum deduction of $400 for those earning at least $1,000 in business income.
ASTA said the deduction is applicable to many advisors. In a survey conducted earlier this year, 87% of respondents said it was moderately or very significant to reduce their tax liability.
"Travel advisors pour their profits into customer service, technology and education. Making the tax deduction permanent provides certainty so they can keep innovating for travelers," said ASTA vice president of advocacy Jessica Klement.
Text from the Freedom to Invest in Tomorrow's Workforce Act was also included in the bill, expanding the approved uses of 529 savings plans. Previously, the funds could be applied to a U.S. college or university or an apprenticeship program. Now, funds can be used for postsecondary training and credentialing, like ASTA's Verified Travel Advisor certification.
Klement called it "a common-sense update," noting that "professionals can choose the training that best suits their goals."