How the ‘One Big Beautiful Bill’ Could Boost Your Business’ Bottom Line

President Trump recently signed into law the widely publicized “One Big Beautiful Bill Act” (OBBBA), a legislative package reshaping tax benefits for corporate America. The bill permanently extends many provisions of the Tax Cuts and Jobs Act (TCJA) of 2017, including reduced individual tax rates and higher standard deductions, which support sole proprietorships and pass-through entities, such as Subchapter S corporations and partnerships. For example, an owner earning $650,000 annually can expect a tax cut of about $32,000 per year, and that’s before the additional business deductions, such as QBI.

QBI Deduction: the gift that keeps on giving

The OBBBA enhances the Qualified Business Income (QBI) deduction, which increases phase-out thresholds from $340,000 for joint filers to $490,100, thereby enabling more business owners to qualify. Importantly, the QBI deduction, previously set to expire in 2025, has been made permanent.

If you’re planning to sell your business:

Extra cash flow today can translate into a prettier EBITDA multiple tomorrow. Buyers adore predictability (and bankers love coverage ratios).

Expanded expensing rules give instant gratification

Section 179 expensing and bonus depreciation allow for the immediate deduction of 100% of expenditure up to $2.5 million (previously $1.2 million) for depreciable business property, with the investment phase-out now starting at $4 million. This provision is now permanent, whereas previously, it was set to expire in 2025, with only a 60% immediate deduction.

Consider Stephanie, the owner of a printing company in Williamstown. Stephanie has needed a state-of-the-art printer since 2024. But at a ticket price of $250,000, she’s been putting it off. If she had bought it then, her bonus depreciation would have been limited to 60%, meaning she could only deduct $150,000 of the printer’s cost in that year. However, under the new law, she can deduct 100% of the qualifying equipment costs immediately. At a 21% federal corporate tax rate, Stephanie’s tax savings will be $52,200 ($250,000 x 21%), resulting in an additional upfront benefit of $21,000.

If you’re planning to sell your business:

The sooner you place equipment in service, the sooner you pocket the deduction and benefit from those newer assets. Plus, this investment is attractive to prospective buyers. Nobody pays top dollar for yesterday’s machinery.

Family and employee benefits: hidden opportunities

The paid family and medical leave credit is now permanent and offers businesses greater flexibility.

Businesses can still receive tax credits for wages directly paid to employees taking family and medical leave. Additionally, companies now have the option to claim this credit based on premiums paid to purchase an insurance policy that covers paid family and medical leave benefits. This change can help reduce overall expenses related to employee leave.

Suppose Stephanie’s employee, Bob, left work on qualified leave for four weeks and was paid $1,000 per week; Stephanie pays Bob a total of $4,000. Stephanie could directly pay wages to Bob and receive a tax credit by filing IRS Form 8994 and reporting it as part of her annual tax return on IRS Form 3800 (General Business Credit). Alternatively, Stephanie could purchase an insurance policy to cover these costs and make deductions on the premiums.

SALT deduction: a temporary reprieve for pass-throughs

The State and Local Tax (SALT) deduction is raised to $40,000 until 2030, but will revert to its previous $10,000 after that. This higher deduction, which takes effect in 2025 and lasts through 2029, will benefit small businesses that file taxes through pass-through entities. These businesses often pay state and local taxes directly through personal income tax returns, and the increased SALT deduction will lower their federal tax burden.

If you’re planning to sell your business:

Use the five-year window of the new SALT deduction to accelerate income when you’re most likely to benefit.

Employer-provided child care: your hiring superpower

The OBBBA enhances the employer-provided childcare credit, making it more attractive for small businesses to offer childcare benefits to their employees. This improvement is beneficial in helping small companies attract and retain talent. Providing childcare assistance can boost employee satisfaction, decrease turnover, and enhance overall productivity by alleviating a significant source of stress for employees. This incentive creates an opportunity for businesses to differentiate themselves in competitive labor markets, particularly where work-life balance is increasingly prioritized.

Let’s say Stephanie wants to hire Maria, an experienced technician with two children. Stephanie’s competitor also extended an employment offer to Maria. Stephanie partners with a nearby childcare center, agreeing to subsidize childcare for its employees, including Maria. Stephanie offers to pay $10,000 annually toward childcare for Maria’s two children. Due to the credit, Stephanie receives a federal tax credit up to 25% of qualified childcare expenses.

You might ask, “But can’t everyone offer that?” Yes, they can, but not every business owner is savvy enough to capitalize on these opportunities. You are. As with other tax benefits, they’re yours if you claim them.

The takeaway is simple: The tax code just handed small‑business owners a bigger tool kit. Use it. Whether you’re upgrading equipment, sweetening employee benefits, or setting the table for a lucrative exit, timing is everything.

Are you ready to start planning your exit?

We can help! Book a free, 15-minute call with our team to learn how OBBBA fits into your five-year plan.

Situations and characters are fictional and designed to illustrate a concept.

This article first appeared in the Berkshire Eagle on July 19, 2025.