After our previous post for taxpayers and how the One Big Beautiful Bill impacts individuals, we are covering today how it affects business owners:

  1. Firstly, this bill makes permanent or extend some of the Tax Cuts and Jobs Act (TCJA) benefits that were to sunset in 2026.
    1. Bonus depreciation – 1st year 100% depreciation if in service after January 19th, 2025 (one day before the inauguration) – Before it was for 40% in 2025 tax year
    2. R&D Full deduction in one year (or two years) period even retroactive to 2022 – Before it was 5 years for domestic R&D and 15 for international R&D
      1. Several requirements like annual gross receipts of $31m or less
    3. 163 g – Interest expense limitation  – it reverts limitation of 30% Ebitda from 2017 to 2022
    4. New Qualified Production Property (Manufacturing) -> 100% deduction
      1. Construction to began after January 19, 2025 and before January 2029, required to be placed in service before January 1, 2031
    5. Section 179 depreciation increased $1m to $2.5m
    6. Many other:
      1. Terminated or eliminated energy or green credits
      2. 10 year designation for opportunity zones
      3. Form 1099 reporting threshold increased from $600 to $2,000
      4. Form 1099K reporting threshold increased to old values of $20,000 plus 200 transactions

If you have any questions about how these new tax law changes may affect you or your business, feel free to reach out to our team of tax professionals — we’re here to help.