Washington just passed the One Big Beautiful Bill Act (OBBBA), a major tax overhaul signed into law on July 4, 2025. This sweeping legislation extends many provisions from 2017’s Tax Cuts and Jobs Act (TCJA) and introduces new rules that will impact small and midsize businesses for years ahead.
Here are five important updates every business owner should know:
1. The QBI Deduction Made Permanent
The 20% Qualified Business Income (QBI) deduction for pass-through businesses was set to expire in 2025.
What’s new?
- The deduction is now permanent.
- Income thresholds for wage and property limitations rise to $75,000 (single) and $150,000 (married filing jointly) starting in 2026, indexed for inflation.
- A new minimum deduction of $400 applies if your aggregate QBI is at least $1,000.
2. 100% Bonus Depreciation Here to Stay
Originally phasing out, 100% bonus depreciation is now permanent.
Why it matters:
You can fully expense qualifying assets immediately if placed in service after January 19, 2025—an important cash flow advantage for growing businesses.
3. Immediate R&D Expensing Restored
Previously, businesses had to amortize domestic R&D expenses over five years.
Update:
- Domestic R&D expenses are again fully deductible in the year incurred.
- Businesses can amend 2022–2024 returns to recapture amortized costs.
4. Business Interest Deduction Expanded
Under prior rules, businesses couldn’t add back depreciation and amortization when calculating taxable income for the interest limitation.
Now:
- Starting in 2025, the EBITDA-based calculation returns, allowing you to deduct more interest expense.
5. Higher Immigration and Employment Fees
Employers hiring foreign workers should prepare for new and increased fees, including:
- $500 Temporary Protected Status application fees
- $550 Employment Authorization Document fees
- $1,050 Waiver of Inadmissibility fees
- Additional fees for asylum applications, visa issuance, and Form I-94
Need Help Navigating the OBBBA?
Tax law changes create both opportunity and complexity. Whether you’re planning major purchases, reviewing your entity structure, or updating your tax strategy, X-Accounting can help you make smart decisions.
Contact us today to see how the OBBBA impacts your business.