In July 2025, Congress passed the One Big Beautiful Bill Act (OBBBA). It changed key rules on deductions, depreciation and small-business taxes. The tax rules shifted, and so can your bottom line.
Miss one of these changes and you could leave money on the table, or face an unexpected bill at filing time. Here are the provisions business owners ask us about most.
Changes for businesses
- The 20% qualified business income (QBI) deduction is permanent. Owners of pass-through businesses such as sole proprietorships, partnerships and S-Corps can continue to plan around it.
- 100% bonus depreciation is back. Qualifying business property acquired after January 19, 2025 can be fully expensed in the year it is placed in service, instead of being depreciated over several years.
- Domestic research and development costs can be expensed again rather than spread out over years.
Changes for individuals and families
- The 2017 tax cuts are now permanent, including the lower tax brackets and the larger standard deduction.
- The state and local tax (SALT) deduction cap rose to $40,000 for those who itemize, up from $10,000. It increases slightly each year through 2029 and is reduced for incomes above $500,000.
- A new $6,000 deduction for seniors age 65 and older applies from 2025 through 2028, for itemizers and non-itemizers, and phases out at higher incomes.
- The child tax credit increased to $2,200 per child, with part of it refundable.
- New deductions for qualified tips and overtime pay are available for several years, subject to limits and income phase-outs.
Why timing matters
Many of these provisions reward decisions made during the year: when you buy equipment, how your business is structured, and how income is timed. Every quarter you wait closes a planning window and can mean higher estimated tax payments. Early action means bigger deductions, smoother cash flow and no year-end scramble.
What to do next
Don’t wait until filing season to discover the impact. Our OBBBA Impact Review starts with your most recent return: upload it, and within 48 hours of the review we come back to you with your gaps and your next moves.
This article is general and educational. It is not personalized tax, legal or investment advice, and tax rules can change. Individual circumstances vary.
