ASTA Applauds Tax Deduction, 529 Plan Changes in Government Budget

The American Society of Travel Advisors (ASTA) is applauding two key provisions from the recent passage of the budget package signed into law by President Trump last week that will impact its members.

The first is that the bill makes the Section 199A deduction permanent, which allows some small businesses, including independent travel advisors, to deduct 20% of their qualified business income. It also raises the income limits to $75,000 for individuals, and $150,000 for couples filing jointly.

It’s a powerful tax benefit for advisors, ASTA President Zane Kerby said about Section 199A last year, and was set to expire at the end of 2025.

In a survey of ASTA members earlier this year who have made use of this deduction, 87% reported that it was moderately significant (21%) or very significant (66%) in reducing their overall tax liability. Additionally, nearly 80% stated they would have to change their business practices in some way — reducing staff, increasing fees, reducing spending, or retiring altogether — if the deduction was not extended.

ASTA had sent a letter to the House Ways and Means Committee in May to encourage the move.

The second is a change in 529 plans that will allow advisors to use money in those plans for postsecondary training and credentialing, such as ASTA’s Verified Travel Advisor certification. That change was central to ASTA’s messaging during this year’s Travel Advisor Conference in Salt Lake City.

“Making the tax deduction permanent provides certainty so they can keep innovating for travelers. Additionally, expanding the permissible use of 529 plan funds beyond traditional college costs means professionals can choose the training that best suits their goals,” said Jessica Klement, ASTA’s vice president of advocacy. “It is a common-sense update that will strengthen the travel advisor profession.”