1. Permanent 100% bonus depreciation
You can write off the full cost of eligible equipment, machinery, and business assets in the year you buy them — instead of spreading it over years. Property must be acquired after January 19, 2025. This is now permanent, so you can plan capital purchases with confidence.
2. Enhanced, permanent QBI deduction
The 20% Qualified Business Income deduction for pass-through businesses (LLCs, S-corps, sole props) was set to expire end of 2025 — it's now permanent and expanded:
- Phase-out thresholds raised to $75,000 single / $150,000 joint (from $50K/$100K)
- A new $400 minimum deduction if you have at least $1,000 of QBI from a business you materially participate in
- Thresholds now inflation-adjusted from 2026
3. Immediate R&D expensing (with amend-back)
Businesses can again deduct R&D costs immediately instead of amortizing them. The big win: companies with average gross receipts under $31 million can amend past returns (2022–2024) to apply the favorable rules and potentially claim refunds.
4. Permanent lower individual rates
The reduced individual tax rates from the 2017 law are now permanent — important because most pass-through business income is taxed at individual rates.
What founders should do
- Time equipment purchases to use 100% bonus depreciation in high-income years
- Confirm you're capturing the full QBI deduction with the new thresholds
- If you had R&D spend in 2022–2024 and are a smaller firm, look at amending for a refund
- Revisit your entity choice — the permanent QBI rules can shift the S-corp vs LLC math
The bottom line
OBBBA turned a set of expiring, uncertain breaks into permanent ones and sweetened several. The planning opportunities are real — but they depend on your specific numbers, entity, and timing. That's exactly the kind of thing worth a flat-fee review.
Frequently asked questions
What is the One Big Beautiful Bill Act (OBBBA)?
It's a tax law signed July 4, 2025 that made several business tax breaks permanent — including 100% bonus depreciation and the 20% QBI deduction — and added new benefits like immediate R&D expensing.
Is bonus depreciation really 100% again?
Yes. OBBBA made 100% first-year bonus depreciation permanent for eligible assets acquired after January 19, 2025, letting you write off the full cost in the purchase year.
What changed with the QBI deduction?
The 20% Qualified Business Income deduction is now permanent, the phase-out thresholds rose to $75K single / $150K joint, and there's a new $400 minimum deduction for materially participating owners.
Can I amend past returns for R&D expensing?
Smaller businesses (average gross receipts under $31 million) can amend 2022–2024 returns to apply the new immediate R&D deduction rules and potentially claim refunds.
Does OBBBA change whether I should be an S-corp?
It can. The permanent, expanded QBI rules shift the math on entity choice. It's worth re-running the S-corp vs LLC comparison with the new thresholds.
Want to capture every OBBBA break you qualify for?
We'll run your numbers against the new rules — depreciation, QBI, R&D — and tell you exactly what it saves, flat fee.
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