New Tax Law Supports Small Business Investment and Innovation

The new tax law, officially known as the One Big Beautiful Bill Act, delivers significant benefits for Main Street small businesses. Key provisions include doubling the deduction for new equipment and capital purchases to $2.5 million this year, restoring 100% bonus depreciation, and reinstating immediate expensing for research and development (R&D) costs. These changes remove prior financial hurdles for small manufacturers, allowing them to invest in operational upgrades, energy resiliency, and workforce development. The law also makes permanent the 20% small business deduction, providing the clarity and stability business owners need to plan confidently for long-term growth.

WY It Matters: This law directly empowers small businesses to grow, innovate, and compete. For Wyoming and across the nation:

• Fueling Innovation: Immediate R&D expensing frees up capital that was previously tied up by amortization rules, enabling small manufacturers to develop new products, improve processes, and invest in cutting-edge technologies.

• Boosting Productivity: Full upfront deductions for equipment purchases reduce financial risk, allowing businesses to modernize operations and adopt labor-saving technologies, critical for industries facing workforce shortages.

• Planning with Confidence: Permanency in deductions and depreciation rules removes uncertainty, allowing business owners to make strategic investments in hiring, equipment, and infrastructure without fear of sudden tax changes.

Overall, the One Big Beautiful Bill Act equips small businesses with the tools to expand operations, support local communities, and contribute to long-term economic growth, turning wish-list projects into real-world opportunities for Wyoming and the U.S. economy.