Will the OBBB age like a fine wine or turn into vinegar?

Written by James Sanders

You have to love D.C. and the names of bills.  Yes, the “One Big Beautiful Bill” (OBBB) was signed by President Trump on July 4^th.  Will OBBB’s impact on business develop into a fine wine or vinegar?  Time will tell.  Below are key business-related provisions for you to consider:

• Expensing for R&D: The OBBB reinstates the immediate deduction or alternative amortization options for domestic research and development costs. This provides businesses with greater flexibility in how they handle R&D expenses.
• Section 199A Deduction (QBI): The bill makes the QBI deduction permanent at 20%. This benefits pass-through businesses by allowing them to deduct a portion of their qualified business income.
• Section 179 Expensing: The OBBB increases the Section 179 expensing limit for small businesses, allowing them to deduct a larger portion of the cost of qualifying assets in the first year.
• Bonus Depreciation: The OBBB restores, permanently, the 100% bonus depreciation initially allowed under the TCJA.  It also allows 100% bonus depreciation for “qualified production property” where begins after Dec. 31, 2024 and is placed into service before Jan. 1, 2034.
• Business Interest Deduction: The OBBB restores the more generous business interest deduction limitations based on EBITDA.
• Qualified Opportunity Zones (QOZ): The OBBB extends and modifies the QOZ program, including changes to eligibility and reporting requirements.
• Qualified Small Business Stock (QSBS): The OBBB increases the benefits of Section 1202 related to QSBS, including a shortened holding period, increased gain exclusion limits, and a higher gross asset value cap for eligible corporations.

If you have questions about these provisions or any others, please consult your professional business advisors.