Imagine a world where your business expenses work harder than you do. That might sound like a dream, but last night, the Senate passed the “One Big Beautiful Bill” in a dramatic 51–50 vote, with the VP breaking the tie.
It’s not final yet—the House still has to weigh in—but if it sticks, this could become one of the most sweeping tax updates we’ve seen in years, especially for business owners.
Here’s what’s inside—and what it could mean for you.
Buy It, Deduct It. Instantly.
If you’re eyeing new equipment, tech upgrades, or even improvements to your office, this one’s big.
The bill would make 100% bonus depreciation permanent. Translation? Purchase something for your business and deduct the entire cost in the first year
- No phasing out.
- No waiting.
- Just the immediate impact.
This is perfect if you’re planning capital investments or building a more efficient business.
Are You Creating? Get Rewarded.
If you develop products, build software, or invest in innovation, the R&D deduction returns retroactively to January 1, 2024. You’ll be able to fully deduct research and development costs immediately, rather than spreading them over five years.
If that sounds like you, it’s time to revisit those 2024 expenses. You might be sitting on a surprise deduction.
Debt-Heavy Business? You’ll Like This One.
The new rules revert to calculating interest deductions based on EBITDA (earnings before interest, taxes, depreciation, and amortization), not EBIT. That might sound technical, but if your business carries debt, this change increases the amount of interest you can deduct.
This is a cash flow play. It matters.
QBI Deduction: Not Going Away
The 20% Qualified Business Income (QBI) deduction becomes permanent under the Senate version.
Even better? The income phase-out thresholds increase to $75,000 (single) and $150,000 (joint). If you’ve been missing out before, you may now qualify.
And if you’re already getting the full deduction, it’s here to stay. That makes long-term planning easier.
Estate Planning Gets a Boost
The estate tax exemption bumps up to $15,000,000 per person and becomes permanent.
If you’re building a business and a legacy for your family, this one’s a win. You’ll have more room to plan, protect, and pass on your wealth.
Still Capped at $10K: SALT (State and Local Tax) Deduction
The $10,000 cap on state and local tax deductions stays, despite the House proposing to raise it. And some of the popular “pass-through workarounds” used in certain states? Those may get squeezed too.
Translation: If your strategy depends on SALT deductions or PTE rules, it’s time for a fresh look.
Other Nuggets You Shouldn’t Miss:
- R&D changes apply retroactively to 2024
- New breaks for tips, overtime, and car loan interest (with income caps)
- Standard deduction increase is permanent
- Debt ceiling raised by $5 trillion, with deficit concerns likely fueling more political debate
What Now?
If your business nets over $200K, this is the moment to take a breath and plan smart. Consider:
- Tech or equipment purchases → You could write off 100%
- R&D expenses → Start documenting now
- Your business structure → Are you set up to capture the QBI deduction?
- Interest deductions → Reevaluate if you’re carrying debt
- SALT and state strategy → This one’s evolving fast
The Bottom Line?
The Senate pulled it off. Will the House? We’ll see.
If they don’t act before the July 4th recess, this bill could stall, shift, or shrink. That means clarity gets delayed, and opportunity gets murky. But here’s the truth: the most successful business owners don’t wait for perfect conditions. They prepare.
If even half of the proposed changes stick like full expensing, R&D write-offs, or a permanent QBI deduction, you’ll want a smart wealth-building tax plan locked and loaded.
Readiness is your edge.
Not scrambling.
Not guessing.
Ready.
We help you pressure-test your tax strategy against what’s coming, so you’re not playing catch-up when the rules change.
P.S. If the bill passes, tax experts will be flooded with new clients trying to catch up. You might want to get ahead of that curve.
We’d love to be your trusted financial, tax, and wealth advisor.
Because we are not your average CPA.
Michael Tannery, CPA, CDFA®, AIF®
