The One Big Beautiful Bill Act: What it Means for Business Owners
The One Big Beautiful Bill Act (OBBBA), signed into law in mid-2025, introduces major updates to U.S. tax policy—especially for small and midsize businesses. The Act aims to simplify the tax code, encourage investment, and make permanent several provisions from the 2017 Tax Cuts and Jobs Act.
Below are five key takeaways every business owner should know and how working with a tax professional can help you make the most of these changes.
1. Permanent Tax Relief for Small Businesses
Pass-through entities (LLCs, partnerships, and S corporations) now benefit from a permanent Qualified Business Income (QBI) deduction, allowing owners to deduct up to 20% of qualified income.
What it means: Business owners can keep more of their profits each year, eligibility and limits vary by income, industry, and structure. Strategic tax planning ensures you stay compliant while maximizing your benefit.
2. Enhanced Investment Incentives
Businesses can continue to fully expense qualifying equipment and property purchases instead of depreciating them over time.
What it means: If your business plans to buy vehicles, machinery, or technology, you may be eligible to deduct 100% of the cost upfront—improving cash flow and lowering your taxable income.
3. Expanded R&D and Growth Deductions
The Act restores immediate deductions for research and development costs and expands allowable interest deductions.
What it means: Companies investing in innovation, technology, or product development may be eligible for major tax incentive savings. Keeping proper records and tracking eligible expenses will be crucial at tax time.
4. Estate and Succession Opportunities
The estate and gift tax exemption has increased, creating a larger window for family-owned and closely held businesses to plan for succession.
What it means: Colorado business owners looking to transfer ownership or establish trusts now have more flexibility to do so tax-efficiently. Reviewing your estate plan with a tax advisor can help preserve wealth and protect your legacy.
5. Planning Certainty and Continued Complexity
The OBBBA simplifies several tax areas, however tax law still includes nuanced requirements and timelines for each provision.
What it means: The Act provides long-term clarity for planning—but compliance will depend on careful recordkeeping, accurate entity classification, and timely filing.
Partner With Momentum
At Momentum Accounting and Tax Inc., we help business owners across Colorado navigate complex tax law with confidence. From structuring your business for the best tax position to planning investments and future transitions, our team ensures you’re compliant, informed, and prepared for growth.
Let us help you turn the new tax law into an opportunity for your business.
