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:
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.
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.
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.
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 Tax Exemption Grows: Increases to $15M in 2026.
Qualified Small Business Stock (QSBS): Bigger tax exclusions and higher limits for entrepreneurs and investors.
Green Energy Credits: Clean vehicle and renewable energy tax credits are ending.
Charitable Deduction Limits: New floors on deductions for both corporations and individuals.
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.