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Congress Passes Major Tax Reforms with Restaurant Wins
Jul 3, 2025

At the Louisiana Restaurant Association, we work year-round to advocate for the restaurant and hospitality industry at the state Capitol, in local councils, and within agencies across Louisiana. And today, we’re proud to share that your voice has been heard on the federal level as well—thanks to our powerful partnership with the National Restaurant Association.
Congress has passed the long-awaited tax and spending reconciliation bill, and it’s now headed to the President’s desk. While the legislation touches on many issues like immigration, healthcare, and government spending, we remained focused on what matters most to you: restaurant tax priorities.
And we’re proud to report—we delivered.
Together, We Achieved Major Federal Wins
Working in partnership with the National Restaurant Association, we successfully secured all the top federal tax priorities we’ve been advocating for over the past year. These reforms offer long-term relief, stability, and reinvestment opportunities for Louisiana restaurants and the people we employ.
Here's What This Means for Louisiana Restaurants:
- Permanent Pass-Through Tax Deduction
The 20% qualified business income deduction is now permanent—a major victory for independent restaurant owners and operators structured as LLCs, partnerships, or S-corps. This ensures continued tax relief beyond 2025. - Full Expensing for Capital Investments
Restaurants can now immediately expense new equipment, furniture, and renovations (retroactive to January 20, 2025). No more multi-year depreciation—this frees up cash flow for reinvestment. - Business Interest Deduction Fix
The bill restores the original formula (based on EBITDA, not EBIT), allowing restaurants that use financing to deduct more of their interest expenses, permanently. - Shift Meals Deduction Protected
Employee shift meals—free or discounted—are now explicitly protected under federal tax law as a deductible business expense. No guesswork, just clarity and savings. - New Tax Relief for Employees
For tax years 2025–2028, employees earning under $150,000 (or couples under $300,000) can benefit from two major deductions:- No Taxes on Tips: Deduct up to $25,000 in tips from their taxable income
- No Taxes on Overtime: Deduct up to $12,500 in overtime pay annually
Why This Matters to Louisiana
Several of these provisions were set to expire—meaning Louisiana restaurants would have faced higher taxes just as we’re regaining momentum. Thanks to this bill, these critical tax benefits are restored and in many cases made permanent, protecting your ability to grow, hire, and thrive.
What Happens Next?
President Trump is expected to sign the bill into law very soon, putting these reforms into effect for the current tax year. This delivers immediate relief to Louisiana restaurants and the hardworking employees who keep our industry running.
How We Did It
This victory is the result of strong collaboration between the Louisiana Restaurant Association, fellow state restaurant associations and the National Restaurant Association. Our efforts at the state and local levels are amplified when we join forces on Capitol Hill. We’re grateful to be part of a nationwide advocacy network that gets results—and appreciative that so many Louisiana restaurant leaders played a role, from signing letters to meeting directly with lawmakers.
Help Us Keep the Momentum Going
We won this fight because we stayed focused, worked together, and spoke with a united voice. If you're celebrating this win, consider reinvesting part of your tax savings to support our continued advocacy efforts:
- Join or renew your LRA membership—your dues directly support our advocacy work at the state, local, and federal levels.
- Invest in our policy efforts to help us continue shaping laws that support your business.
- Share this update with your team and peers—and invite them to join the LRA community.
As we head into the Fourth of July holiday—a time to celebrate our freedoms and the people who make this country thrive—we’re especially thankful for the hardworking restaurant owners, employees, and advocates who made this legislative victory possible. This win reflects what can be achieved when we come together with a shared purpose and a commitment to strengthening our industry. We hope this news brings you a renewed sense of stability and optimism as you gather with family, friends, and your community this week.