Big Wins for Small Businesses: New Tax Law Changes You Need to Know

The new “One Big Beautiful Bill Act” is delivering real savings for small businesses, with permanent deductions, bigger credits, and retroactive refunds on the table. Here’s the quick rundown:

• 20% QBI Deduction Now Permanent: Sole proprietors, partners, and S-corp shareholders can lock in this deduction every year, with new minimums to boost smaller claims.

• Full R&E Write-Offs: Deduct 100% of U.S.-based research and experimental expenses, and potentially retroactively for 2022–2024.

• Bigger Section 179 Expensing: Immediately deduct up to $2.5 million in qualifying equipment or software purchases.

• Enhanced QSBS Exclusion: Expanded opportunities for tax-free gains on qualifying small business stock.

• Boosted Child Care Credit: Up to $600,000 in credits for small businesses providing employee child care.

The bottom line? These changes mean more cash in your pocket to reinvest, grow, and hire. But timing matters, you can claim benefits for purchases and expenses made now, even those dating back to January 20, 2025.

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