The One Big Beautiful Bill Act: A Win for Small Businesses

On July 4, President Trump signed the One Big Beautiful Bill Act (OBBBA), preventing a massive tax hike by making key parts of the 2017 Tax Cuts and Jobs Act permanent. This law delivers important, lasting tax reforms designed to help American small businesses grow and thrive.

Here are five key benefits for small businesses:

1. Permanent 20% QBI Deduction: The 20% deduction for pass-through businesses is now permanent, with expanded eligibility and a new minimum deduction of $400, offering long-term tax certainty.

2. Full Expensing of Research & Experimental Expenses: Starting in 2025, businesses can fully deduct research expenses immediately again. Small businesses with under $31 million in receipts can apply this retroactively to 2022, easing burdens on innovation-driven companies.

3. Higher Limits for Equipment Expensing (Section 179): The deduction cap for equipment purchases increases from $1 million to $2.5 million, making it easier for small businesses to invest in new assets.

4. Expanded Qualified Small Business Stock (QSBS) Exclusion: The gain exclusion cap for investors in small businesses rises from $10 million to $15 million, encouraging more investment in startups and growing companies.

5. Enhanced Employer-Provided Child Care Credit: The child care tax credit increases substantially, with higher caps and coverage rates, especially for small businesses. This helps employers attract and keep working parents.

Bottom line: OBBBA provides permanent, pro-growth tax reforms that give small businesses the stability and support they need to invest, hire, and succeed. It’s a big step forward for American entrepreneurship and local communities everywhere.