The Professional Beauty Association (PBA) commends 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, small business owners in the beauty industry will be eligible to access the existing FICA tip tax credit, correcting a longstanding inequity in the US tax code.

The bill will go through the markup process in the House Ways and Means Committee. The Professional Beauty Association admonishes Congress to retain Section 45B as the legislation moves forward.

“This is a deeply personal moment for our industry,” said 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.”

US Salon and Spa Industry a Gateway to Small Business Ownership

The US salon and spa industry is a powerful contributor to the US economy and a gateway to small business ownership.

Over one 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—3 times the national average; 98% operate as single-location small businesses; the industry generates $81.8 billion in annual US revenue; and 32% of workers are self-employed—versus 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,” said 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.”