Why New Tax Rules Could Reshape the Future of U.S. Businesses
With sweeping reforms proposed in the One Big Beautiful Bill Act, entrepreneurs must prepare for transformative tax policy shifts.
Major Tax Incentives on the Horizon
The Senate’s review of the One Big Beautiful Bill Act signals a pivotal moment in U.S. tax legislation. If passed, the bill would enhance and extend numerous tax incentives designed to bolster business investment, hiring, and innovation.
- The Qualified Business Income (QBI) deduction would rise from 20% to 23% and become permanent.
- Immediate deductions for domestic R&D expenses would return, applying from 2025 through 2029.
- Full bonus depreciation on qualifying assets like equipment and software would be reinstated, allowing 100% upfront deductions.
Evolving Investment Priorities
The bill reflects a shift in what the government encourages businesses to invest in.
- Past incentives favored renewable energy and emissions reduction through credits for solar panels and EVs.
- New provisions prioritize American manufacturing and domestic fossil fuel production.
- A new $10,000 deduction is proposed for loans on U.S.-assembled vehicles, altering the appeal of prior green investments.
Personal Tax Changes That Affect You and Your Team
The legislation doesn’t just impact business taxes — it also brings substantial personal tax reforms.
- The standard deduction would increase to $16,000 for individuals and $32,000 for couples.
- Seniors could receive a $4,000 bonus deduction if under income thresholds, though this expires in 2028.
- The SALT cap would jump to $40,000 for many filers in 2025, phasing out above certain income levels.
- Exemptions on tips and overtime pay are also proposed, impacting payroll strategy and employee compensation.
New Opportunities for Aspiring Entrepreneurs
If you’re considering launching a business, now may be the ideal time.
- These changes lower startup costs and improve the ability to reinvest earnings.
- With increased deductions and clearer long-term incentives, new ventures could launch with stronger financial footing.
Stay Ahead with Smart Planning
Keeping informed on tax policy changes is essential to safeguarding your bottom line.
- Revisit your tax strategies, especially if tied to green initiatives or R&D investments.
- Consult tax professionals to align your business with evolving legislative priorities.
With careful planning, your business can adapt to — and thrive under — this next wave of tax reform.
