May 22, 2025 (Des Plaines, Ill.) – The International Warehouse Logistics Association (IWLA) today praised the U.S. House of Representatives for passing the FY2025 budget reconciliation bill, highlighting its many benefits for the third-party logistics warehousing industry and family-owned logistics businesses. The legislation permanently extends the 2017 Tax Cuts and Jobs Act provisions – locking in the low individual tax rates, the nearly doubled standard deduction, and the higher AMT exemption thresholds – giving warehousing companies certainty that steep tax increases won’t hit them in 2026.
The bill also permanently raises the estate and gift tax exemption to $15 million per individual ($30M per couple, indexed for inflation), ensuring that multi-generational, family-run warehouse firms can plan for succession without fear of punitive “death taxes.” Importantly, the bill expands and makes permanent the Section 199A pass-through deduction, increasing it from 20 percent to 23 percent. House Ways and Means notes that this change alone could create “over 1 million new Main Street small business jobs,” a boon for warehousing operators hiring in local communities.
The reconciliation also includes workforce and investment provisions critical to logistics. It establishes a “Workforce Pell” program to extend Pell Grants to high-quality short-term credentialing and trade programs, and broadens 529 education savings accounts to cover postsecondary vocational training. These changes will help the warehousing sector recruit and upskill workers for jobs in distribution centers, inventory management, and supply-chain technology.
On the capital side, the legislation fully restores 100-percent bonus depreciation, allowing companies to immediately expense the cost of new equipment and machinery. For example, a warehouse operator would be able to buy new forklifts, conveyors, or racking systems and deduct the full cost today, greatly improving cash flow for reinvestment. The package also directs reforms to certain EPA regulations, aiming to provide clearer, more cost-effective compliance options for warehouse and logistics facilities.
IWLA President & CEO Jay Strother says the tax certainty will have an immediate positive impact on members if enacted. “We applaud the House for locking in the tax rates and deductions our industry relies on,” Strother says. “Making permanent the lower tax brackets and higher standard deduction will give warehouse operators the confidence to plan and expand. Likewise, extending the increased estate tax exemption means family-owned logistics businesses will be able to grow and pass on their enterprises without worrying about crippling tax burdens.”
IWLA Chairman Doug Sibila, president & CEO of Total Distribution Solutions, (a family-owned warehousing business headquartered in Ohio), added that these provisions are a “game-changer” for family businesses.
“For decades we’ve been building our company for the next generation, and now the policy finally supports that,” Sibila says. “Permanently extending the estate tax exemption and indexing it for inflation means we will not have to liquidate the business to pay taxes. Likewise, the bigger pass-through deduction and restored bonus depreciation mean we will be able to move ahead now with
equipment purchases – everything from forklifts and material handlers to trucks and warehouse automation – without an immediate tax penalty.
“We also applaud the bill’s regulatory relief,” Sibila continues. “Reforms at EPA will give our industry clearer rules and more cost-effective compliance options, instead of burdens that slow down distribution and infrastructure projects. Combined, these measures will help us invest in our facilities and workers, creating jobs in our communities.”
The IWLA statement noted that the organization strongly supports swift Senate approval of the measure. Strother emphasized that delays could stall critical warehouse investments: “We commend the House for its hard work, and we urge the Senate to pass this legislation quickly so that 3PL warehouse companies can continue investing in infrastructure, equipment, and workforce development.”
IWLA also thanked its members for their tireless advocacy in this effort: “Our members’ engagement on Capitol Hill made a real difference in shaping these provisions,” Strother says. “Your voice helped secure these outcomes for the warehouse logistics industry, and we look forward to continuing this partnership in the years ahead.”
#
Note: Photos are available on request. IWLA Convention media credentials are available for accredited industry journalists. For more information, please send your requests to blinderman@IWLA.com or call 847.813.4698.
About IWLA: Since 1891, the International Warehouse Logistics Association has been the resource for warehouse logistics, advocacy, and education. For more information, visit www.IWLA.com. IWLA, formerly the American Warehouse Association, serves nearly 600 corporate members representing more than 3,000 warehousing locations. IWLA members are integral to the global supply chain, providing expertise in storage, distribution, transportation, and logistics management. IWLA advocates for fair working conditions, secure supply chains, and efficient trade practices to benefit both the logistics industry and consumers.