The Tire Industry Association (TIA) has applaudsedthe permanent estate tax relief included in the “One Big Beautiful Bill” (OBBB), signed into law by President Trump on July 4. The legislation marks a significant step forward for family-owned businesses, delivering long-awaited certainty by making the federal estate tax exemption levels permanent.
US Estate Tax Exemption Increased to $15 Million per Individual
A centrepiece of the legislation is the permanent increase of the unified estate, gift, and generation-skipping transfer (GST) tax exemptions to $15 million per individual and $30 million per couple, with both amounts indexed for inflation. Unlike prior tax reforms, which included sunset provisions or automatic reversion to lower thresholds, OBBB enshrines these higher exemption levels into permanent law, providing the clarity and security business owners have long demanded.
“This is a landmark victory in the fight against the death tax,” said Roy Littlefield IV, Vice President of Government Affairs for TIA. “For decades, we’ve worked to protect the future of family-owned businesses from punitive estate taxes. This bill offers a level of certainty and protection we’ve never seen before.”
The new law represents the most favourable federal estate tax environment since TIA began its advocacy efforts. Just over two decades ago, in 2001, the exemption stood at a mere $675,000, with a top tax rate of 55%. The sweeping changes in OBBB mark a dramatic and welcome shift.
While TIA continues to support the complete repeal of the federal estate tax, this legislation is a meaningful step forward. With these increased and permanent exemption levels, family-owned tyre businesses can now prioritise growth and succession planning without the looming threat of devastating tax liabilities.
TIA remains committed to advancing policies that protect and promote family businesses across the tyre industry and beyond.
