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Last summer, Congress passed the “One Big Beautiful Bill.” Inside it were two major changes that directly impact how small businesses, including those in the green industry, handle tax reporting. Independent Contractors (Form 1099-NEC / 1099-MISC)The IRS has long required businesses to issue 1099s to independent contractors once payments exceeded $600 in a year. That low threshold has caused headaches for decades. The new law raises the threshold beginning in 2026:
✅ This means that starting in 2026 you won’t need to issue 1099s for small, one-off jobs. For example, if a nursery pays a contractor $1,200 for seasonal pruning, no 1099 is required under the new threshold. Payment Apps (Form 1099-K) The bill also resets the rules for third-party payment networks like Venmo, PayPal, and Cash App. In recent years, there was confusion over whether even small transactions would trigger 1099s. The new law clarifies and restores the old standard:
✅ For TNLA members, this means using PayPal to pay a supplier a few times won’t generate a new 1099-K from PayPal. Only businesses with a high volume of app-based transactions will see 1099-Ks. Why It Matters for TNLA Members
Takeaway for Members:Starting in 2026, the 1099 rules will be more practical and less burdensome for small businesses in Texas’ green industry. TNLA will continue to track federal tax updates and keep you informed.
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New Tax Breaks, Workforce Wins, and Industry SupportOn July 4, 2025, H.R. 1—known as the “One Big Beautiful Bill”—was signed into law. At 870 pages, it’s one of the most sweeping federal laws in recent history. But here’s the bottom line for TNLA members: it includes some powerful wins for your business.
Here’s what matters most: 🌿 529 Plans Can Now Fund Certifications You can now use 529 education savings to cover industry licenses—like irrigator training, pesticide applicator certification, or landscape credentials. This makes workforce development more accessible for young professionals in our industry. 🔧 Full Write-Offs for Equipment & R&D Businesses can now fully expense:
That means lower tax bills and more room to innovate and invest. 🏦 Loan Interest Deductions Restored Businesses that borrow to buy land, expand greenhouses, or manage inventory can now deduct more interest expenses, thanks to the return of EBITDA-based limits. 💼 199A Pass-Through Deduction Made Permanent The Qualified Business Income deduction for S-corps, LLCs, and sole proprietors now increases from 20% to 23% starting in 2026. That’s more relief for small and mid-sized businesses. 🌱 Expanded Grower Support & Plant Protection
These provisions mean long-term investment in plant health, crop resilience, and industry sustainability. The Takeaway: While the bill didn’t fix everything (especially on the labor side), it delivers significant financial and operational benefits for Texas green industry businesses. TNLA will continue monitoring how funding rolls out—and will keep pushing for additional reforms where they’re needed most. |
TNLA StaffInterpersonal stories all from TNLA Archives
October 2025
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