The Big Beautiful Bill in Plain English: What Business Owners Need to Know

Laws like the One Big Beautiful Bill Act (OBBBA) can seem dense and intimidating—but business owners can’t afford to tune out. This landmark legislation is reshaping the tax and planning landscape for entrepreneurs, property owners, and families. Here’s a clear breakdown of what it means for your income, your business structure, and your legacy.

Effective Date: July 4, 2025

The law officially takes effect on Independence Day, ushering in a wave of tax benefits designed to stimulate business investment and economic growth. That gives business owners a short runway to position themselves for maximum advantage before year-end planning begins in earnest.

Business Deductions: 100% Bonus Depreciation Is Back

Through 2026, businesses can once again take 100% bonus depreciation on qualified property. This is a significant opportunity: it means you can deduct the full cost of eligible assets—like equipment, vehicles, or property improvements—in the year you buy them, rather than spreading those deductions out over time.

For companies looking to reinvest profits, upgrade infrastructure, or expand operations, this is a major chance to reduce taxable income while fueling growth.

No 2026 Federal Tax Bracket Hike

A planned 3% federal income tax increase was canceled. This provides welcome stability for business and personal financial planning, making it easier to forecast cash flow and design multi-year strategies with greater confidence.

Bigger SALT Deduction: A Boost for High Earners

The cap on State and Local Tax (SALT) deductions has been raised to $40,000, giving meaningful relief to business owners and individuals in high-tax states. This change can free up significant cash flow for reinvestment, charitable giving, or strategic savings.

Estate Planning: More Runway for Tax-Free Transfers

Perhaps one of the most impactful changes is the $15 million per-person estate tax exemption, now locked in through 2026. This opens up powerful opportunities for strategic gifting, trust funding, and legacy transfers—particularly for business owners whose companies are rapidly appreciating in value. Acting now allows families to move assets out of their estates tax-free before potential future reductions.

What This Means for Business Owners

OBBBA creates a tax-friendly window through 2026, but it won’t last forever. Business owners who act strategically now can:

• Accelerate deductions and reduce taxable income.
  
• Reinvest in their companies with less out-of-pocket cost.
  
• Lock in historically high estate tax exemptions.
  
• Create more predictable financial strategies for the next two years.
  

Waiting could mean missing out on tax savings, planning flexibility, and legacy-building opportunities.

Take the Next Step

Take our Business WellCheck Assessment to uncover where OBBBA opens doors for your company. We’ll help you identify strategic opportunities, minimize risks, and build a plan that protects your business, your family, and your legacy.