means they can continue to offset steep state tax bills. Without this provision, many of them would have faced higher federal tax burdens. “That equates to roughly $20 billion in savings for pass- through entities,” Reardon explained.
Benefits Clouded by
PATRICIA BIBLE PRESIDENT AND CEO KATOM RESTAURANT SUPPLY
“This bill is more than just tax policy; it’s a business strategy accelerator. It gives companies like ours the clarity to grow with confidence.”
— Patricia Bible President and CEO KaTom Restaurant Supply
Tariff Uncertainty From the manufacturer’s perspective, John Haselbarth, CFO, and Brian Kelly, president at National Refrigeration and A/C Products, Inc. (NRAC), said the tax bill is a mixed bag. On one hand, they welcome the tax provisions that help manufacturers invest and grow. But those positives are being offset by persistent tariffs, regulatory complexity and workforce shortages that continue to weigh heavily on manufacturers’ operations.
“The tax rate changes and the ability to expense capital purchases more quickly are positives,” Haselbarth said. “However, a lot of those gains are canceled out by tariffs and other external pressures. That’s the frustrating part.”
Still, the permanent nature of
the tax relief provisions is seen as a key advantage. Had the 2017 cuts expired, Kelly said it would have hurt manufacturing further and forced NRAC, the parent company of Continental Refrigerator, to reassess planned investments. With permanence comes a dose of stability that’s helping the company move ahead with equipment upgrades and smaller capital purchases that had been sitting on the fence. “It may not shift the needle on our biggest purchases,” Haselbarth said, “but it will help us with our overall investments.”
A Powerful Tool for Business Growth
Although other factors may be softening business conditions, the tax provisions of the reconciliation bill have the potential to be a powerful tool for business growth immediately and in the years ahead. Foodservice equipment dealers like KaTom Restaurant Supply are eager to use the tax savings to put more cash back into the business for equipment upgrades, employee development, strategic expansion, and other initiatives without having to second-guess the future.
“The tax savings aids equipment capital expenditure, dramatically moving the timeline up with investment purchases,” Patricia Bible, president and CEO of KaTom, said. “It allows us to accelerate our growth strategy, strengthen our infrastructure and continue investing in the tools and technology that empower our team and serve our customers at the highest level.”
Looking beyond taxes, Bible said the higher child and dependent care tax credit can help with talent retention while permanent incentives for capital improvements level the playing field for midsized distributors. Combined, these benefits support modernization, improve cash flow and enhance the ability to compete in an industry sector where low margins are the norm. With so many components designed to support businesses, Bible said now is a great time for FEDA members to familiarize themselves with the long- term value of this important piece of legislation. “This bill is more than just tax policy; it’s a business strategy accelerator,” she said. “It gives companies like ours the clarity to grow with confidence.”
14 FEDA News & Views
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