The Professional Beauty Association (PBA) applauds Chairman Jason Smith (R-MO) for including Section 45B in the newly introduced tax reconciliation package—“The One, Big, Beautiful Bill.” For the first time ever, small business owners in the beauty industry will be eligible to access the existing FICA tip tax credit, correcting a longstanding inequity in the U.S. tax code.
“This is a deeply personal moment for our industry,” says PBA’s Government Affairs Director, Myra Reddy, who leads the PBA’s federal advocacy efforts. “With the inclusion of Section 45B, we are hopeful we may finally see tax fairness for thousands of hardworking beauty and barbering professionals.”
The U.S. salon and spa industry is a powerful contributor to the U.S. economy and a gateway to small business ownership.
- 1.3 million professionals work in personal appearance occupations
- 83% of those professionals are women
- 47% of salon businesses with payroll are minority-owned
- 69% are women-owned—3x the national average
- 98% operate as single-location small businesses
- The industry generates $81.8 billion in annual U.S. revenue
- 32% of workers are self-employed—vs. 6% nationally
Post COVID, the professional beauty industry has rebounded with strong revenue growth and is projected to add jobs at twice the national rate over the next decade.
“This is not just a tax issue—it’s a workforce issue, an equity issue, and a recognition issue,” says Leslie Perry, Executive Director of the PBA. “Salon owners across the country have been fighting to be heard. Today, they finally are. Our inclusion is proof persistent, united advocacy works.”
PBA also extends gratitude to its partners at the International Salon Business Network (ISBN) for their partnership and commitment to this effort.
“This was a true team effort. ISBN’s leadership and engagement were instrumental in helping our industry speak with one voice. We are proud to stand together in this success,” adds Kati Rapoza, PBA’s Government Affairs Manager.
The bill will now go through the markup process in the House Ways and Means Committee. The Professional Beauty Association strongly urges Congress to retain Section 45B as the legislation moves forward.
To learn more about PBA, visit probeauty.org.
