What is the One Big Beautiful Bill Act?
Signed into law on July 4, 2025, the One Big Beautiful Bill Act (OBBBA) makes sweeping changes to federal tax law, making permanent many provisions from the Tax Cuts and Jobs Act (TCJA), and introducing new deductions and credit reforms.
If you own a business, manage a trust, or are planning your estate, this bill has significant implications.
Why It Matters to Business Owners and High-Income Individuals
Most tax laws are temporary. The OBBBA locks in long-term advantages—allowing you to plan with greater confidence. It also introduces permanent changes that reduce tax burdens, enhance investment incentives, and open new planning opportunities, especially around wealth transfer and Opportunity Zones.
Key Tax Changes for Businesses
- QBI Deduction Expanded & Made Permanent
Owners of pass-through entities (LLCs, S corps, etc.) can continue to deduct up to 20% of qualified income. - 100% Bonus Depreciation
Businesses can now deduct 100% of the cost of qualifying assets placed in service after January 19, 2025. - Section 179 Expensing Increased
The cap jumps to $2.5M (with a $4M phase-out threshold), indexed annually for inflation. - New “Qualified Production Property” Deduction
A full deduction applies to production assets placed in service through 2031. - Research & Experimentation Deduction
Permanently allows immediate deductions for domestic R&D expenses (retroactive to 2022 for small businesses). - Qualified Opportunity Zone (QOZ) Program Extended Through 2033
Investors can continue to defer and exclude capital gains through long-term investments in QOZs. - Childcare & Paid Leave Employer Credits Made Permanent
Increases maximums and expands eligibility.
Estate, Gift, and Trust Planning Highlights
- Estate & Gift Tax Exemption Raised
Beginning in 2026, the exemption increases to $15M per individual or $30M per married couple, up from $13.99M. - Generation-Skipping Transfer (GST) Exemption Also Increased
Indexed for inflation, offering new flexibility for multi-generational wealth transfer. - Trust Income Tax Brackets Remain High
Top trust tax rate of 37% still applies to income over $15,650 in 2025. - Capital Gains for Trusts & Estates
Thresholds remain steep: 20% rate kicks in above $15,900 in trust income. - Credit Shelter Trusts (Bypass Trusts) Become More Relevant Again
Especially for high-net-worth married couples preparing for the TCJA sunset at year-end 2025.
How This Impacts Your Financial Plan
The permanent nature of many OBBBA provisions gives individuals and business owners the ability to plan more confidently. However, the removal of several clean energy and itemized deductions means a strategic reevaluation is necessary.
This may be the time to:
- Revisit your estate documents
- Reallocate business investments
- Accelerate high-income tax strategies
- Reassess Opportunity Zone potential
What to Do Next
Navigating tax reform is complicated—but you don’t have to do it alone. Whether you’re a business owner, estate planner, or trust administrator, the OBBBA affects your strategy.
📩 Reach out to our team for a tailored tax planning session
We’ll help you understand the full impact on your finances and what actions to take before year-end.
