President Trump’s One Big Beautiful Bill Act (OBBB) was signed into law. This sweeping legislation includes major tax reform provisions that will have far-reaching implications for small businesses in the years to come.
One of the biggest impacts of the OBBB is that it will make several key provisions from the 2017 Tax Cuts and Jobs Act (TCJA) permanent. These policies, which offered extensive relief for many small businesses, were set to expire at the end of 2025, which means the “tax cliff” many had feared will be avoided.
Now-permanent tax provisions under the OBBB include:
- 20% qualified business income (QBI) deduction for pass-through businesses (LLCs and S Corps).
- 100% bonus depreciation for new capital investments.
- Increased interest deductibility limits.
- Immediate R&D expensing, retroactive to January 2022 for businesses with less than $31 million in gross receipts.
