| What the New Tax Law Means for Your Business – Key Changes Under OBBBA |
| On July 4, 2025, President Trump signed the One Big Beautiful Bill Act (OBBBA) into law—a sweeping tax reform package that brings significant changes for both individuals and businesses. Whether you operate as a sole proprietor, partnership, S corporation, or C corporation, these updates are likely to impact your business strategy and bottom line.In this blog post, we’re focusing on the key business tax provisions, including: ⚙100% Bonus Depreciation – Permanently extended for qualified property acquired and placed in service on/after Jan. 19, 2025. 📈 Higher Section 179 Expensing – Max deduction increases to $2.5M with a $4M phase-out threshold. 🔬 Full Expensing for Domestic R&E –Effective Jan. 1, 2025, with retroactive relief to 2022 for eligible small businesses. 💼 Permanent 20% QBI Deduction – Higher income phase-out thresholds and a new $400 minimum deduction. 📑 Higher 1099 Reporting Threshold – Raised from $600 to $2,000 starting in 2026 (indexed for inflation). 💵 EBITDA Interest Limitation – Returns to the more favorable calculation starting in 2025. 👶 Expanded Employer-Provided Childcare Credit– Higher percentages, larger maximum credit, and inflation adjustments. 💇 Tip Credit Expansion – Now includes the beauty services industry starting in 2025. 🌱 Opportunity Zones Made Permanent – Rolling10-year designations starting in 2027. 🏢 QSBS Exclusion Changes – Tiered exclusion rates based on holding period, higher asset eligibility limits. To view the latest business tax law updates, simply click the “2025 Tax Law Changes – Business” to see a clear table comparing the old and new provisions.2025 Tax Law Changes – Business. We’re here to help you understand how these changes apply to your business and identify strategies to minimize your tax liability while maximizing growth opportunities. Stay tuned for additional posts covering other areas of the bill, as well as ongoing IRS guidance. We’ll continue to keep you informed on what it means for you. Visit our Tax Resource Library on our website, where you’ll find valuable insights on a range of tax topics. Best regards, Your team at Insight Accounting Group |
Key Business Changes Under OBBA
