The Big ‘I’ Secures Important Win as Senate Passes Tax Package

The ‘One Big Beautiful Bill Act’ makes permanent the 199A deduction for pass-through entities.

WASHINGTON, D.C., July 1, 2025—The Big “I” applauds the U.S. Senate for passing the “One Big Beautiful Bill Act” earlier today. The package includes significant tax reform and would make much of the 2017 Tax Cuts and Jobs Act (TCJA) permanent, which would otherwise expire at the end of this year.

The package would make permanent the 199A deduction for pass-through entities and keep it at the current 20% level. With 86% of independent insurance agencies structured as pass-through entities and filing taxes at the individual rate, according to the 2024 Agency Universe Study, this is a major win for Big “I” members.

The bill would also make the individual tax rates permanent, while modifying the inflation adjustment mechanism for the various brackets. The package does not change the corporate rate, which was made permanent by the TCJA.

“As independent insurance agencies navigate the hard market and broader economic headwinds, preserving the 199A deduction is a vital step toward greater stability for both agencies and the businesses and families they support,” said Charles Symington, Big “I” president & CEO. “The Big ‘I’ government affairs team has been hard at work advocating for this tax policy on behalf of independent agents across the country, as the vast majority of Big ‘I’ members rely on this deduction.”

As originally drafted, the Senate package included a provision that would have subjected third-party litigation funding (TPLF) to a new tax. However, that provision was removed by the Senate parliamentarian for failing to meet the “Byrd Rule,” a Senate rule that restricts certain legislative content when a bill is being considered under the reconciliation process.

The Big “I” commends Senate Majority Leader John Thune (R-South Dakota) and Senate Finance Committee Chair Mike Crapo (R-Idaho) for their leadership and dedication in moving the legislation forward. The amended package now goes back to the U.S. House of Representatives to be considered and voted on again.

“While we are disappointed that the Senate’s tax package was unable to crack down on third party litigation funders, we are thankful for the work that has been done to bring tax certainty to Main Street America,” said Nathan Riedel, Big “I” senior vice president of federal government affairs. “The package is far from being done, though. We encourage the House to take up and pass this final version quickly.”

Founded in 1896, theIndependent Insurance Agents & Brokers of America (the Big “I”) is the nation’s oldest and largest national association of independent insurance agents and brokers, representing more than 25,000 agency locations united under the Trusted Choice® brand. Trusted Choice independent agents offer consumers all types of insurance—property, casualty, life, health, employee benefit plans and retirement products—from a variety of insurance companies.