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📰 LEGISLATIVE UPDATE: One Big Beautiful Bill Act Passes – What It Means for Small Business
Published: July 2025 | Source: NFIB Presentation
The “One Big Beautiful Bill Act” (OBBB) has officially passed—and it’s packed with major wins for small business owners. This landmark legislation delivers long-term tax relief, cuts down on red tape, and promotes investment and growth in the small business sector. Here's a quick breakdown of why it matters:
✅ 20% Small Business Tax Deduction Made Permanent
– The popular Section 199A deduction was set to expire in 2025. It’s now here to stay, benefiting 9 out of 10 pass-through businesses.
✅ Permanent Lower Federal Tax Rates
– Prevents scheduled tax hikes on individuals and small businesses. Keeps current brackets like 12%, 22%, 24% instead of reverting to higher 2017-era rates.
✅ Estate Tax Protection
– Exemption raised to $15M (individual) / $30M (joint). Small businesses can now be passed down without selling off assets to cover taxes.
✅ Section 179 Expensing Doubled
– Expensing cap increased to $2.5M, giving small businesses greater flexibility when investing in equipment and tools.
✅ Less IRS Paperwork
– 1099 thresholds raised:
• 1099-K: $600 → $20,000
• 1099-NEC & 1099-MISC: $600 → $2,000 (indexed for inflation)
✅ Bonus Depreciation Restored
– 100% expensing for qualified equipment purchases is made permanent—supporting reinvestment and upgrades.
✅ American Manufacturing Incentives
– New 100% bonus depreciation available for domestic factory construction through 2031.
✅ R&D Expensing Reinstated
– Full, immediate deduction of research and development costs helps businesses innovate without tax penalties.
💡 Other Notable Benefits:
- Flat 21% Corporate Tax Rate remains unchanged
- Temporary SALT Deduction Increase to $40K
- Expanded Employer Child Care Credit (up to $500K)
- HSA Expansion: Now covers Direct Primary Care
- Tax Breaks for Individuals:
• No tax on tips (up to $25K)
• No tax on OT pay (up to $25K for joint filers)
• Deduct interest on car loans (up to $10K) - Methane Tax Repeal: Reduces energy costs
This bill represents a major victory for small businesses—ensuring lower taxes, more predictable planning, fewer compliance headaches, and stronger incentives to grow and invest. Whether you’re a sole proprietor, independent contractor, or small employer, these reforms are designed to support your bottom line.
Want to learn more? Reach out to your local Chamber or visit nfib.com for full details.
#SmallBizWins #OneBigBeautifulBill #TaxRelief #ChamberAdvocacy
