If you're a business owner, business leader, or key decision-maker—it doesn't matter what industry you're in—the recent signing into law of the One Big Beautiful Bill Act (OBBBA) will likely have far-reaching effects on business operations, finances and taxation.
Fortunately, for many businesses, those impacts will be largely beneficial. This is especially true when you look at some of the new tax breaks and other benefits that the act includes specifically for businesses. The key, of course, is to better grasp the nuances of OBBBA as they relate to your business so you can plan (and reap the benefits) accordingly.
So, what do you need to know?
First, it can be helpful to have a little more background into OBBBA. Specifically, this act was formally signed into law by President Trump on July 4, 2025. In simplest terms, OBBBA was created in an effort to reform the existing tax system while making major changes to the American healthcare system and Insurance Marketplace.
From a business standpoint, the law itself includes numerous changes to taxation, business expense reporting and more. You can read more about the law on the Congress.gov website here.
If you've heard OBBBA spoken about on the news or written about by those in politics, you already know that there's great controversy over OBBBA and its potential long-term effects on the healthcare system, immigrants and other aspects of United States policy.
From a business standpoint, however, very few would argue against the notable benefits OBBBA stands to offer. As a business leader or decision-maker yourself, here are a few of the key benefits your company may be able to reap as a result of this new law and its provisions.
Expanded Business Interest Expenses
Under OBBBA, the previous deduction limit for business interest expenses has been significantly increased (it was capped at 30% of business income previously). Now, business owners can factor in amortization, depreciation and even depletion as part of their income calculations—which may, in turn, make it possible for businesses to deduct greater amounts of interest from their taxable income.
Permanent 100% Bonus Depreciation
Another notable change under OBBBA that could work to your company's advantage is a permanent reinstatement of 100% bonus depreciation for properties acquired after January 19, 2025 and that meet certain qualification requirements. For these qualifying properties, businesses can now claim bonus depreciation for building improvements, renovations and other expenses that can help businesses offset these costs.
Broader Research and Development Tax Breaks
Last but not least, OBBBA will expand upon existing research and development tax breaks for businesses looking to invest money into improving their processes and/or end products. More specifically, OBBBA now allows for capitalized research and development costs from previous years to be deducted in 2025 or split between the next two tax years.
It is worth noting, however, that these tax benefits are for businesses operating in the United States only; they are not available to businesses conducting foreign research and development.
Under OBBBA, businesses may also benefit from new equipment depreciation options—depending on the industries in which they operate. More specifically, the existing Section 179 depreciation benefit of $1.25 million has been doubled under OBBBA and now includes a depreciation opportunity known as the Qualified Production Property (QPP) deduction. Businesses able to claim this deduction can benefit from being able to deduct all qualified production activity, thus reducing taxable income and taxes owed. This, in turn, could free up cash flow for these businesses as well.
The One Big Beautiful Bill Act arguably marks the biggest change to business taxes since the Tax Cuts and Jobs Act (TCJA) of 2017, so it's to be expected that there will be some initial challenges for business owners and decision-makers as they adapt to new rules and provisions.
At the same time, with expanded business interest expenses, a permanent 100% bonus depreciation and more generation R&D tax cuts in place, many businesses stand to benefit from the terms of this new law. The key, of course, is understanding these changes and what they may mean for your business. If you could use some additional help handling changes under OBBBA, meeting with a financial advisor could help you take your next steps with confidence and peace of mind.
If you have any questions or would like more information, please contact our tax team.