The One Big Beautiful Bill Act (OBBBA) is a wide-reaching piece of legislation signed into law in July 2025. This comprehensive package covers a broad range of topics including tax provisions. Although many aspects of the law are still in the process of being implemented, many of its tax provisions took effect immediately and will impact your 2025 tax filings.
What does this mean for your business?
- QBI deduction: The qualified business income (QBI) deduction is made permanent and the deductible amount for each qualified business remains at 20%.
- Bonus Depreciation: 100% expensing (bonus depreciation) for qualified property is restored for property placed in service after 1/19/25.
- R&E Expenditures: OBBA provided an immediate deduction of domestic research or experimental expenses paid or incurred in 2025. However, research or experimental expenses attributable to research that is conducted outside the United States will continue to be capitalized and amortized over 15 years.
Click HERE for more info on the OBBBA
Contact your CPA for additional info on how the OBBBA will affect your 2025 tax filings.
