President Trump signed The One Big Beautiful Bill Act (OBBBA) into law on July Fourth, introducing several tax provisions that will significantly impact small businesses both immediately and over the long term.
In the short term, small businesses will benefit from enhanced cash flow and upfront tax savings. The 100% bonus depreciation through 2026 allows businesses to immediately deduct the full cost of qualifying assets, while the increased Section 179 expensing limit—rising to $1.4 million in 2025 and indexed for inflation—makes it easier for smaller firms to invest in equipment and infrastructure. Additionally, the higher $40,000 SALT deduction cap, active 2025–2028, may offer some tax relief to small business owners earning less than $500,000 annually in high-tax states.
In the long term, the Act offers predictability and planning stability. Making the 21% corporate tax rate and the 20% pass-through deduction (Section 199A) permanent ensures lower effective tax rates and gives owners confidence in choosing or maintaining their business structure. Permanently easing interest deduction rules and expensing policies from the TCJA further supports long-term investment decisions.
What should I do now that OBBBA has passed? If you’re searching for a qualified CPA near me, partnering with an experienced firm is the best course of action for accurate and compliant tax filing. In the meantime, we recommend that you accelerate capital expenditure to leverage bonus depreciation and ensure you accurately report tipped and overtime income in your payroll systems. Our team is ready to answer any questions or concerns.
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Whether you’re a small business navigating the impacts of federal legislation or seeking long-term growth, Badger CPA is here to help. Our experts offer business advisory services, tax planning, and comprehensive accounting services for small businesses. Meet our team and learn more.