On July 4, 2025, President Trump signed into law the “One Big Beautiful Bill Act (H.R. 1)”, a sweeping package of tax reforms and economic policy changes that will ripple across industries, including the golf industry. The legislation, officially titled the “American Prosperity and Fairness Act,” touches nearly every corner of the tax code and includes several provisions with direct implications for golf course owners, employees, and customers.
Here’s what you need to know:
For Golf Course Owners and Operators: Favorable Tax Treatment Continues
The bill extends and enhances several tax breaks for business owners, particularly those operating as sole proprietors, S corporations, or partnerships. The 20% small business tax deduction has been made permanent.
Lower Tax Rates: The individual tax brackets created in the 2017 Tax Cuts and Jobs Act are now made permanent, meaning most pass-through business owners (like many golf course owners) will continue to pay lower tax rates on business profits. Retains current rates of 10%, 12%, 22%, 24%, 32% and 35%.
Section 179 Deduction: Businesses can continue deducting the full cost of qualifying capital improvements—such as course maintenance equipment, irrigation systems, and buildings—up to $2.5 million annually. This allows golf facilities to invest in infrastructure without the burden of long depreciation schedules. Allows golf courses to deduct the full purchase price of qualifying equipment in the year it is acquired.
SALT Deduction Cap Raised: The state and local tax (SALT) deduction cap is raised to $40,000 for households earning less than $500,000. That’s particularly relevant for golf courses and resorts located in high-property-tax states, where previous SALT limits had disproportionately impacted property owners.
1099 Reporting for NEX and Miscellaneous Payments. The legislation increases the reporting requirement from $600 to $2,000 for 1099-NEC reporting, applicable to non-employee payments, such as those made to independent contractors. 1099-K reporting increased from $600 to $20,000, reporting payments you received from payment card processors, payment apps, and online marketplaces for the sale of goods or services.
For Employees: New Tax Relief for Tipped and Hourly Staff
The bill includes two major provisions aimed at easing the tax burden for frontline service workers, many of whom work in the golf industry.
Tip Income Deduction: Employees who earn tip income—such as caddies, beverage cart attendants, and restaurant staff—can deduct up to $25,000 in tips from their federal taxable income each year. This could result in several hundred dollars in tax savings annually for lower- to middle-income workers. However, it’s essential to note that this deduction does not eliminate payroll taxes (Social Security and Medicare), and it phases out for individuals earning more than $150,000. The deduction applies only to employees, not self-employed individuals or independent contractors.
Overtime Pay Deduction: Non-exempt employees can also deduct up to $12,500 (single) or $25,000 (joint filers) of overtime earnings from federal income taxes. This supports hourly workers and seasonal staff who often work extended shifts during peak golf months.
These provisions are set to expire in 2028 unless extended and are subject to annual inflation adjustments.
Permitted Use of Personal 529 Education Savings Accounts for Certification - The law authorizes tax-free use of 529 savings to fund non-degree workforce training programs, including exam and certification costs, under the WIOA program structure. The final determination of which programs will be approved will be addressed in the implementation guidance for the new law.
For Retirees: More Disposable Income for Leisure Activities
Golf course operators should take note of changes impacting retirees, a key customer demographic.
The bill introduces a new $6,000 personal deduction for seniors (or $12,000 for couples), aimed at shielding more Social Security income from federal taxation.
While the law doesn’t fully eliminate taxes on Social Security benefits, it effectively reduces or removes tax liability for an estimated 88% of senior households.
This could translate into increased disposable income for many retirees—money that may be spent on recreation, such as club memberships, green fees, and golf travel. This is particularly promising for courses in retirement-heavy regions, such as Florida, Arizona, and the Carolinas.
While some of these items are temporary, many have become permanent, at least until a different party controls Congress. The cost of these tax benefits must be paid for.
With the significant cost of the “Big, Beautiful Bill”, we can expect external financial pressures in the future if the BBB does not achieve some of the projections made by Congress and the Administration. Examples include;
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Higher interest rates as the Treasury competes for capital
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Increased borrowing costs for commercial loans, mortgages, and lines of credit
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Operators looking to finance course improvements, buy new equipment, or acquire land may face higher interest rates.
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Refinance opportunities may become less available or more expensive.
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Private investors in golf may become more cautious, making capital less accessible for independent owners.
While today’s tax code is favorable, the bill that led to its creation adds to a federal debt that could create future headwinds, particularly in the form of rising interest rates, higher costs, and potential tax hikes should financial benefits not be realized. Golf course owners would be wise to use the next few years of fiscal tailwinds to reinvest wisely and prepare for a less certain future.