ISBN ADVOCACY

Working Together, Our Industry Wins

In 2025, after decades of collaboration with industry partners and support from ISBN members, we achieved a collective, bipartisan victory that benefits salon, spa, barbershop and personal care services businesses everywhere.

ISBN Leaders reflect on what this victory – the 45B Tip Tax Credit – means, what comes next and the importance of ISBN members staying involved.

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TAX FAIRNESS AND TIPS

FICA Tax Tip Credit and No Tax on Tips legislation signed into law, July 4, 2025.

For years, ISBN worked tirelessly to obtain the same tax credit that the food and beverage industry has enjoyed since 1993. In 2025, Congress officially passed the 45B FICA Tip Tax Credit, finally providing tax fairness for salon, spa and barbershop owners by allowing employers a dollar-for-dollar tax credit on the employer portion of FICA taxes on employee tips.

ISBN worked closely with PBA and other associations in our industry to educate members of Congress and correct this decades-long tax inequity and give overdue relief and recognition to our community. This permanent tax credit will pay dividends in the form of substantial tax credits for years to come. At the same time, Congress passed No Tax on Tips, a temporary federal deduction that will significantly benefit many of our services professionals.

To celebrate these generational victories, the contributions of so many, and the impact on our industry, ISBN recently gathered our Government Affairs committee to record a special podcast. We also celebrated together at Conference 2026 — and outlined next steps to keep fighting the good fight to protect and grow our industry’s progress and vitality.

NAVIGATING THE NEW TIP INCOME TAX PROVISIONS

What you and your associates need to know about the recently passed Tip Tax legislation and its immediate impact and real-time implications for ISBN members and our industry. In this recap culled from a special Breakout session at Conference 2026, learn more about how to apply the 45B FICA Tip Tax credit, manage compliance and protect your organization.

LEARN MORE – COMING SOON

WE NEED YOUR VOICE

WAYS TO STAY INVOLVED

We’ve made significant Government Affairs progress, but there is much more to be done. Watch for an update from a special panel on “Policy in Motion: Taxes, Licensing and More” from Conference 2026.

LEARN MORE – COMING SOON

CONGRESS PASSES TIP TAX CREDIT

Read the real-time coverage of one of the most significant federal policy wind in our professional industry’s history. From our trusted partner, BIR – the Beauty Industry

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MORE FROM OUR PARTNER

Our ISBN ally and industry partner PBA (the Professional Beauty Association) advocates on behalf of the entire professional beauty and barbering community. Learn more and support their efforts here.

PBA Advocacy

SHARE YOUR STORY

The impact of passing 45B – The FICA Tip Tax Credit – along with No Tax on Tips legislation makes a huge impact on our industry and our businesses. ISBN wants to keep telling your stories of “how.” And we’d love to showcase your associates, too. Please email us a quick summary. Let us know if you have images available, whether or not you or team members are willing to record a short message, who to contact and how best to do so. Thank you from ISBN!

EMAIL ISBN jessica@salonspanetwork.com

What the Industry is saying

“The beauty industry has been working to get this much needed legislation passed for as long as I can remember (and I have been in the industry a long time!). It is truly hard to believe that we have had to work this hard to have legislation passed that is simply common sense fairness based on existing laws around the same credit received by the restaurant industry. My team is my most important asset. Receiving this credit would allow me to shift from paying taxes on revenue my business does not receive to further investing in the women who work in my salon."

Paige Garland

Rachel’s Salon & Day Spa

“As a long-time business owner, there has been an inequity in the federal tax code, giving restaurant owners access to a tax credit while salons have been left out. The 45B FICA tax tip credit allows restaurant owners a dollar-for-dollar tax credit on taxes paid into Social Security and Medicaid from their business on customer-paid tips. This ensures that their restaurant businesses are not losing money by allowing servers to accept tips from customers while maintaining the funds for their servers’ Social Security and Medicaid with the IRS. Considering the current state of inflation, business costs, and the demand to be competitive to retain employees, salon owners need to keep these tax dollars now more than ever!”

Lisa Lane

salon owner of Lisa’s of Annapolis

“The current system penalizes salon owners who declare and pay taxes on their employee’s tips. Extending the 45B credit to the salon industry will increase tax compliance in the second most tipped industry after restaurants and bars."

Edwin Neill

Neill Corp

“As a South Carolina salon owner, it’s hard to reconcile why our highly-tipped industry doesn’t have access to same tip credit as our restaurant neighbors. This credit would keep needed funds in my business and in turn be a huge benefit to my hard-working employees.”