On July 4th, President Donald Trump signed into law key PIA policy priorities, delivering a significant victory for independent insurance agents.
The 20% qualified business income (QBI) passthrough tax deduction, which was set to expire at the end of 2025, was made permanent by the enacted legislation. The countless PIA members who have benefited from the deduction since 2017 will now be able to continue investing in their business, staff, and consumers to deliver high-level service.
The reconciliation bill also provides for the reinstatement of an annual administrative and operating (A&O) inflation adjustment for crop agents beginning with the 2026 reinsurance year. This inflation adjustment will provide significant relief to crop insurance agents who have had their commissions effectively cut for almost a decade.
PIA is also pleased that Congress elected to respect the rights of states to regulate artificial intelligence and removed a dangerous ten-year moratorium on state-level AI regulation from the final bill. State insurance regulators are already at the forefront of AI regulation, with nearly 30 states already adopting the National Association of Insurance Commissioners (NAIC) bulletin requiring AI governance programs in insurance.
PIA has long been a leading advocate on these important issues and is grateful for the support of the U.S. Congress in uplifting independent insurance agents.