Two major victories for the travel advisor community were tucked inside the sweeping federal budget deal signed into law last week. The American Society of Travel Advisors (ASTA) is celebrating the inclusion of long-sought provisions that offer both immediate financial relief and long-term career support for advisors across the country.
The “One Big Beautiful Bill” Act — recently signed by President Donald J. Trump — includes a permanent extension of the Section 199A tax deduction and new flexibility for how workers can use 529 savings plans. ASTA, which took no formal position on the broader contents of the budget package, had been lobbying for both provisions on behalf of its members.
Section 199A Deduction Becomes Permanent
Independent travel advisors and small business owners were facing the expiration of the Section 199A qualified business income (QBI) deduction at the end of the year. The new law not only makes the 20 percent deduction permanent, but it also raises income eligibility limits to $75,000 for individuals and $150,000 for couples filing jointly. It also introduces a guaranteed minimum $400 deduction, adjusted for inflation, or anyone earning at least $1,000 in active business income.
ASTA pushed earlier this year for an extension of the deduction, which is widely seen as a critical financial tool for entrepreneurs in the travel space.
“Travel advisors pour their profits into customer service, technology and education,” Jessica Klement, ASTA’s vice president of advocacy, said in a statement. “Making the tax deduction permanent provides certainty so they can keep innovating for travelers.”
529 Plans Get a Career-Focused Makeover
Also tucked into the budget bill: the language of the Freedom to Invest in Tomorrow’s Workforce Act, a measure supported by ASTA and the Tomorrow’s Workforce Coalition. This update broadens how 529 savings plans can be used—extending eligible expenses beyond traditional college costs to include career training and credentialing programs like ASTA’s own Verified Travel Advisor certification.
“Expanding the permissible use of 529 plan funds beyond traditional college costs means professionals can choose the training that best suits their goals,” Klement added. “It is a common‑sense update that will strengthen the travel advisor profession.”
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