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What You Need to Know About the One Big Beautiful Bill Act (OBBB)

Written by Marketing | Jul 8, 2025 3:32:51 PM

On July 4, 2025, the One Big Beautiful Bill Act was signed into law, bringing sweeping changes to the U.S. tax code—especially for business owners, entrepreneurs, and high-income individuals.

Accountfully helped break this nearly 900-page legislation into an easy-to-understand guide, and we’ve pulled the highlights here so you can see what matters most. 

Here are the biggest high-level takeaways that could impact your finances and planning:

Key Tax Breaks for Businesses

  • 100% Bonus Depreciation Is Back: Businesses can now immediately expense 100% of qualified assets starting January 20, 2025.

  • Expanded Section 179: Small businesses can deduct up to $2.5M in property (up from $1.22M).

  • Business Interest Deduction: The favorable EBITDA-based calculation for deducting interest is restored permanently.

Support for Innovation

  • Immediate R&D Expensing: Domestic research expenses can now be fully expensed up front.

  • Retroactive Tax Savings: Eligible small businesses may amend returns as far back as 2022 to reclaim previously amortized R&D costs.

Deductions and Credits You Shouldn’t Miss

  • Section 199A QBI Deduction: The 20% deduction is now permanent and more accessible.

  • New Deductions for Overtime and Tips: Cash tips (up to $25K) and overtime (up to $25K) are now deductible for many.

  • Car Loan Interest: Deduct up to $10K/year for new U.S.-assembled vehicles.

Big Changes for Individuals

  • Higher SALT Cap: Deduction limit increases to $40,000 and is indexed for inflation.

  • Child Tax Credit Boost: Increased to $2,200 per child, with higher income limits.

  • Personal Exemptions & Trust Accounts: Enhanced deductions for seniors and the creation of “Trump Accounts” for kids' education, business, and housing.

Estate Planning & Investment Incentives

  • Estate Tax Exemption Grows: Increases to $15M in 2026.

  • Qualified Small Business Stock (QSBS): Bigger tax exclusions and higher limits for entrepreneurs and investors.

Phaseouts & Eliminations

  • Green Energy Credits: Clean vehicle and renewable energy tax credits are ending.

  • Charitable Deduction Limits: New floors on deductions for both corporations and individuals.

Planning for 2025?

These changes will have major implications for your tax strategy, whether you're running a business or managing personal wealth. It’s time to talk with your accountant about optimizing for the new rules.

👉 Read the full breakdown on Accountfully's blog.