Small Business Insights on the Biggest Takeaways from The One, Big, Beautiful Bill so far

sfbayfinancial
Jul 11
2 min read

At almost a thousand pages long, there is a lot to parse through in this newly enacted bill. We've got a quick snapshot of some of the biggest changes for small businesses so far.

1. Major Tax Cuts and Certainty for Businesses

Permanent 20% QBI Deduction (Section 199A): Deduction for pass-through entities made permanent, with expanded eligibility and phase-in ranges.
100% Bonus Depreciation Restored: Full, immediate deduction for qualifying property through 2030.
Immediate Deduction for Domestic R&D Expenses: No more required amortization—full deduction in the year incurred.
Higher Section 179 Expensing Cap: Businesses can write off more qualifying property immediately.
Increased SALT Deduction Cap: Temporarily raised to $40,000 (from $10,000) for certain households (5 years).

2. Incentives and Relief for Small Businesses and Investors

Permanent New Markets Tax Credit: Ongoing incentive for investment in low-income communities.
Expanded QSBS Exclusion: Greater exclusions on gains from selling qualifying small business stock.
Higher 1099 Reporting Thresholds: Eases administrative reporting burden starting in 2026.
Permanent Small Business Estate Tax Exemption: More certainty for business succession.

3. Worker and Consumer Relief

Temporary Deductions for Tips & Overtime: New deductions through 2028 for eligible workers.
Auto Loan Interest Deduction: Up to $10,000 deductible for U.S.-assembled cars purchased 2025–2028.

4. Seniors and Individuals

New "Bonus" Deduction for Seniors: Up to $6,000 ($12,000 married) from 2025–2028, even with the standard deduction.
Reduced Tax on Social Security Benefits: Lower federal tax burden for many seniors.
Permanent Individual Tax Rates & Higher Standard Deduction: Locks in 2017 rates and deduction levels.

5. Other Notable Provisions

Military Spending Increase: Significant rise in defense budget.
National Debt Ceiling: Raised by $5 trillion.
Energy Policy Shift: More oil/gas development on federal lands, phaseout of some clean energy credits, elimination of methane fee.
AI & Infrastructure: Investments in AI, air traffic systems, and resource access.
Rural & Agricultural Investments: New incentives for farmers and rural communities.

It will take some time to fully detail all the new provisions of this law, and accountants will be looking for further guidance from the IRS as they roll out these new policy provisions. That said, you should proactively reach out to your support teams with any questions or guidance on what you can start preparing for now.