The “One Big Beautiful Bill Act” (OBBBA), signed into law on July 4, 2025, reshapes a lot of tax rules that touch everyday business decisions, from buying equipment to offering benefits. Here’s a recap of our recent webinar, with a focus on what matters for your company and for you as a business owner.
The big wins for businesses
100% bonus depreciation is back (and “permanent”)
For property placed in service after Jan. 19, 2025, you can fully expense eligible purchases in year one. A one-year transition election helps if you planned for lower rates. Pair with cost segregation to accelerate write-offs.
Section 179 gets larger
For tax years beginning after December 31, 2024, expensing limits jump to $2.5M (phase-out begins at $4M), indexed for inflation.
New 100% write-off for certain real property
Qualified U.S. production facilities started after January 19, 2025 and finished before January 1, 2031 may qualify, which is an incentive to onshore manufacturing.
1099 relief
- 1099-K returns to a higher bar starting in 2025. Reporting kicks in only if both $20,000+ and 200+ transactions.
- Standard 1099-NEC/MISC threshold rises from $600 to $2,000 in 2026 (inflation-indexed from 2027).
Employee benefits you can use to recruit/retain
- Dependent care FSA exclusion increases to $7,500 (after 2025).
- Employer student-loan payments under education assistance plans are permanent and tax-free to employees.
- Meals & entertainment tweaks in 2026: Entertainment is still non-deductible while “employer convenience” meals lose the 50% deduction. Client meals stay 50% and company parties remain 100%.
- R&D expensing (domestic) has been reinstated, with a retroactive option for 2022–2024 for certain small businesses.
- Opportunity Zones made permanent.
- ERC enforcement tightens (6-year statute; no payments for claims filed after Jan. 31, 2024).
Benefits for you as an individual
- Tax brackets & higher standard deductions from the Tax Cuts and Jobs Act are made permanent (with slight tweaks at the low end).
- SALT cap relief. Temporarily increases to $40,000 for 2025 (phased out at higher incomes), edges up slightly through 2028, then reverts to $10,000 in 2029.
- QBI (199A) is permanent. Expect wider phase-outs and, starting 2026, a $400 minimum deduction if you have at least $1,000 of QBI.
- 529 plans expand (more K-12 and skills/credential uses starting after 2025).
- New kids’ investment accounts (2025–2028 births): contribute up to $5,000/year after-tax, federal adds $1,000, favorable tax on qualified uses (college, first home, starting a business).
- Estate & gift exclusion effectively set at $15M in 2026 (inflation-indexed).
In addition, temporary deductions available from 2025 to 2028 include:
- Senior deduction: $6,000 per person ($12,000 Married Filing Joint Returns) age 65+.
- Tip income: Deduction up to $25,000 (MAGI phase-outs apply).
- Overtime: Deduction up to $12,500 per taxpayer (phase-outs apply).
- Car-loan interest: Deduct up to $10,000 on new, U.S.-assembled personal vehicles (interest incurred after 12/31/24, phase-outs apply). Excludes Fleet Sales, Used Cars, Cash Out Loans on Previous Purchased Vehicles, Lease Financing, and Related Party Loans
Next Steps
This law is complex, with phase-outs, overlapping dates, and many moving parts. We recommend viewing the recording of the webinar and consulting the accompanying slide deck..
The IRS is also working through staffing and budget constraints, so filing season guidance could be late. Treat 2025–2026 as a planning window, not a “set it and forget it.”
As always, we are here to help. If you have any questions about how this legislation applies to your situation, call us at 215-723-4881.
One source, many services, the right decision.
If you have questions about next steps or if we can be of service, please contact us online or call 215-723-4881.
(Please note: This presentation is for general introduction only and should not be relied upon for planning purposes, as regulations and interpretations are still being developed. Dollar amounts generally apply to Married Filing Joint returns, with other filing statuses likely having different amounts.)