One Big Beautiful Bill | Business Tax Provisions

July 7, 2025

On July 4^th, President Trump signed The One Big Beautiful bill (OBBB) into law, which calls for several individual and business tax cuts and changes. Included within the text where many extenders and updates to changes originally introduced in the Tax Cuts and Jobs Act (TCJA) of 2017. While there were dozens of updates and changes the most prominent include an extension of the Section 199a deduction, full expense of R&D expenses, restoration of 100% bonus depreciation, an increase in the SALT deduction, and calls for an expansion of the Employer Provided Child Care Credit. These changes provide a significant opportunity for many Atlanta businesses to reduce federally taxable income. To help clients, prospects, and others, Wilson Lewis has provided a summary of the key changes below.

Key Business Tax Provisions

• Section 199a Deduction (Section 110005) – As part of the TCJA, this deduction was introduced to ensure that pass through entities (S-corporations, partnerships, etc.) received the same tax benefit as C-corporations when the overall tax rate was lowered. The Qualified Business Income Deduction provided a 20% deduction on qualified business income (QBI). This deduction was scheduled to expire at the end of 2025. However, the OBBB has permanently extended the deduction and calls for an increase to 23% (from 20%) the eligible deduction amount. There were also modifications to limitations on the deduction amount based on W-2 wages, capital investments and other specified income.
• R&D Tax Credit (Section 111002) – Many businesses have not taken advantage of the federal R&D tax credit because of the change which requires eligible expenses to be amortized. This change meant that companies had to wait several years to deduct qualified expenses. In other words, they could not immediately capture the tax savings. The OBBB has suspended this change for five years and reinstates the ability to immediately deduct eligible expenses. This is an important change because many businesses have decided not to claim this credit because of the length of time it would take to realize a tax savings.
• 100% Bonus Depreciation (Section 111001) – The opportunity to claim 100% bonus depreciation on qualified property placed into service. However, the TCJA called for a gradual phase-out starting in 2022 with the current year bonus depreciation limit at 40%. The OBBB extends 100% bonus depreciation for eligible property placed into service after January 19, 2025, and before January 1, 2030. For certain types of property with longer production there is a broader window ending on January 1, 2031.
• SALT Deduction (Section 112018) – This tax deduction was originally introduced as part of the TCJA. It was designed to help reduce federal taxable income by permitting a deduction for certain taxes paid to state and local governments. The incentive was scheduled to expire at the end of 2025. The OBBB calls for an extension and increases the limitation to $40,000 ($20,200 for married individuals filing separately). There is also a reduction for those with a gross income over $505,000 ($20,200 for married individuals filing separately), but not below $10,000. The change also increases the limitation by 1% each year between 2027-2033 and then establishes a permanent limitation for subsequent years beyond 2033.
• Employer Provided Child Care Credit – This incentive is designed to encourage employers to invest in childcare services for employees by either building centers or contracting with third parties. The OBBB permanently increases the credit and credits a separate credit amount for qualified small businesses. Under these changes, the maximum credit amount is increased from $150,000 to $500,000 and the percentage of qualified care covered from 25% to 405.

Contact Us

Many of the changes called for in the One Big Beautiful Bill create an immediate tax savings opportunity. In certain circumstances, the changes are retroactive which means there may be saving opportunities from prior years. To determine how your company will be impacted, it is essential to consult with a qualified tax advisor. If you have questions about the information outlined above, or need assistance with another tax issue, Wilson Lewis can help. For additional information call 770-476-1004 or click here to contact us. We look forward to speaking with you soon.