Coinciding with the Nation’s 249th birthday this year, President Trump signed into law the One, Big, Beautiful Bill Act. Sitting at over 800 pages long, the Act makes permanent many provisions of the 2017 Tax Cuts and Jobs Act enacted during the first Trump Administration. Companies can expect key changes to how their business entities will be taxed, as well as numerous changes to familiar programs.
For the greater benefit of small businesses, the Act makes permanent the 20% Qualified Business Income Deduction under Section 199A for owners of passthrough entities, including partnerships, limited liability companies, S-Corporations, and sole proprietorships. The Qualified Business Income Deductions were set to expire at the end of this year, but this provision averts a sudden business tax hike.
In an effort to free up cash-flow, businesses who have research and development expenses from performing research and development within the United States, may now immediately deduct those expenses, rather than spreading those deductions over the current five-year long schedule.
Businesses may now write off 100% of qualified property under Section 179 up to $2.5mm, such as vehicles, software, machinery and equipment, on property purchased after January 19, 2025, in the year it is purchased and placed in service. This is a substantial raise from the previous 40% deduction spread over several years.
The Act offers a couple of employee benefit tax credits – the Paid Leave tax credit, and the Childcare Support tax credit. Both are aimed at encouraging employers to offer paid leave and childcare support programs as part of the benefits package offered to employees.
As these changed begin to roll out, new and existing businesses may benefit from consulting experienced tax and corporate attorneys to navigate the updates in the law. At AMM, our corporate and tax planning attorneys are able to assist you to take advantage of these business-friendly amendments to federal law.
Abraham Frangie practices in the firm’s Business Law and Litigation groups. For more information on the revised SBA loan program requirements, please contact Abraham Frangie at afrangie@ammlaw.com. To learn more about Antheil Maslow & MacMinn’s Business Law Services, please visit our Business & Finance pages at ammlaw.com.