“We were making bold decisions like signifi cantly raising salaries, upgrading equipment and aggressively reinvesting in the business because we could. But if the cuts went away, we’d have had to reverse course. That’s not something you can do without consequences.”
— Huff Harper President
HUFF HARPER PRESIDENT OSWALT RESTAURANT SUPPLY
What Is the OBBBA? At a hefty 870 pages, the OBBBA
includes a wide array of provisions and covers a lot of ground. Some of the most signifi cant benefi ts in the legislation are related to its deductions. The act locks in 100 percent bonus depreciation, increases Section 179 expensing limits for smaller fi rms and raises the qualifi ed business income deduction for pass-through entities. For foodservice equipment and supplies dealers that may have been holding off on equipment purchases or expansion plans due to tax uncertainty, this bill clears the path forward. The bill also includes several worker-focused benefi ts: It eliminates federal income tax on tips and overtime through 2028, raises the standard deduction and leaves Social Security benefi ts untaxed. The act is expansive, but some of the key business- and employee-related provisions include:
• Incentivizes Made-in-America Manufacturing: Full 100 percent expensing for new factories, equipment and machinery for domestic production.
12 FEDA News & Views Oswalt Restaurant Supply
• Expands Opportunity Zones: Permanently renews and strengthens programs, unlocking $100 billion of investment and one million jobs for rural and distressed communities. • Doubles Small Business Expensing: Raises the limit for small businesses to immediately deduct up to $2.5 million in equipment and property costs. • Makes the Small Business Tax Deduction Permanent: Preserves the Section 199A small business deduction, which the White House says will “generate $750 billion in economic growth and create over 1 million jobs.”
• Preserves LIFO: Prevented efforts to eliminate or retroactively tax the last- in, fi rst-out (LIFO) accounting method used by many distributors. • Eliminates Taxes on Overtime and Tips: Saves overtime and tipped workers nearly $1,500 annually.
• Increases Paycheck Size: Boosts take- home pay for a typical family by more than $10,000 a year. While most provisions in the OBBBA apply to tax years beginning after Dec. 31, 2025, many key changes take
effect immediately, and some apply retroactively, such as those tied to transactions that happen after mid-June 2025. For businesses, this means certain deductions and incentives, particularly those related to capital investments and U.S.-made assets, are already in play. On the labor side, the OBBBA
introduces four new tax deductions for 2025 through 2028 that directly affect employees and indirectly benefi t the businesses that employ them. The one that may most assist employees of FEDA members is the overtime pay deduction. This provision allows employees to deduct the overtime premium portion of their pay (essentially, the extra half from time- and-a-half). The cap is $12,500 for individuals, $25,000 for joint fi lers, and it phases out for higher-income taxpayers. Although it may not change payroll for dealers, the overtime deduction could help boost retention and take- home pay, particularly for hourly workers and anyone who is working in a service-based role.
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