MAJOR TAX SAVINGS ALERT: One Big Beautiful Bill Act Changes

The "One Big Beautiful Bill Act" signed into law in July 2025 represents the most significant tax reform since the original TCJA. Small business owners have unprecedented opportunities for tax savings—but only if they understand and act on the changes.

100% Bonus Depreciation Restored

The phase-down of bonus depreciation has been reversed. Qualifying property placed in service in 2025 and beyond now qualifies for 100% first-year bonus depreciation. This means immediate expensing of equipment, vehicles, and qualified improvement property.

Enhanced QBI Deduction

The Section 199A deduction has been made permanent and enhanced. The deduction percentage increases to 23% for certain qualified businesses, and income thresholds for phase-outs have been raised, allowing more business owners to claim the full benefit.

R&D Expensing Restored

The requirement to amortize R&D expenses over five years has been repealed. Businesses can once again immediately expense domestic research and development costs, improving cash flow for innovative companies.

SALT Cap Increased

The state and local tax deduction cap has been raised from $10,000 to $40,000 for married couples, providing significant relief for taxpayers in high-tax states.

New Senior Deduction

Taxpayers over 65 receive an additional $6,000 standard deduction, providing meaningful tax relief for retired business owners.

Planning Implications

These changes create immediate action items: Review equipment purchase timing to maximize bonus depreciation. Evaluate R&D activities for potential immediate expensing. Model the impact of SALT cap increases on your itemized deductions. Adjust estimated tax payments to reflect lower projected liability.