What the One Big Beautiful Bill Act Means for Your Business

Navigating new federal legislation can feel overwhelming, especially when the changes directly affect your business. The One Big Beautiful Bill Act introduces major tax reforms that build on the 2017 Tax Cuts and Jobs Act, and understanding what’s new can help you make confident decisions moving forward. Here’s a clear, business-friendly breakdown of the most important updates.

Permanent Changes That Strengthen Long-Term Planning

The Qualified Business Income (QBI) deduction is now permanent, and the phase-in thresholds have been expanded to $75,000 for single filers and $150,000 for joint filers. This provides more stability for pass-through business owners. Bonus depreciation also returns in full, allowing businesses to permanently expense 100% of qualified capital assets acquired after January 20, 2025—including manufacturing buildings placed in service before 2031.

Investment and Innovation Incentives

Domestic research and development (R&D) costs are once again fully deductible, and businesses can accelerate the recovery of R&D capitalized between 2022 and 2024. However, foreign R&D still requires amortization. The updated Qualified Small Business Stock (QSB) rules bring new tiered gain exclusions, a higher $15M per-issuer cap, and a raised $75M gross assets threshold for stock issued after July 4, 2025.

Updated Deductions and Limitations

Charitable deduction rules now require a 1% floor for corporate giving and a 0.5% AGI floor for individuals who itemize. Employer-provided on-site meal deductions become more limited in 2026, with exceptions for certain fishing operations. Moving expense exclusions have been permanently repealed, except for active-duty military personnel.

Sector-Specific Adjustments

The limit on taxable REIT subsidiary holdings rises from 20% to 25% beginning in 2026. Opportunity Zones (OZs) see expanded definitions, rural-focused incentives, enhanced reporting rules, and 10-year rolling designations starting in 2027. Energy-related incentives are tightening as several credits—including the Clean Electricity Production and Investment Credits—are phased out or eliminated.

Compliance and Enforcement Updates

The IRS now has broader enforcement authority and an extended statute of limitations related to improper Employee Retention Tax Credit (ERTC) claims. A new 1% excise tax will apply to certain cash-based remittances abroad, while transfers via banks and card networks remain exempt. Meanwhile, disaster loss rules from the TCJA are made permanent, and state-declared disasters now qualify for relief.

Business Interest and Capital Structure Changes

The business interest deduction rules shift back to an EBITDA-based limit, offering more generous deductions for many businesses. The Act also clarifies how these rules interact with capitalization requirements, helping companies forecast financing decisions with more confidence.

While the One Big Beautiful Bill Act introduces sweeping changes, you don’t have to navigate them alone. Reviewing your tax strategy now can help you stay compliant, avoid surprises, and make the most of the new rules. Consider connecting with a trusted tax professional to ensure your business is positioned for success under this new framework.