The One Big Beautiful Bill Act (OBBBA) is a U.S. federal law signed by President Trump on July 4, 2025.

Here are major provision and impacts below:

100% Bonus Depreciation Made Permanent

• For qualified property acquired after January 19, 2025, and placed in service thereafter.

Higher Section 179 Expensing Limits (Approx. 2025/2026 Statutory)

• Phase-out Limits
  • Maximum Deduction Limit – $2.5 million
  • Phase-Out Threshold – $4 million
  • Full Phase-Out Point – $6.5 million
• Unique advantages
  • Section 179 allows the deduction for both new and used property, as long as the property is “new to the taxpayer.”
  • Section 179 can be elected for certain Qualified Real Property Improvements, such as roofs, HVAC, fire suppression, alarm systems, and security systems for nonresidential buildings.

Qualified Business Income (QBI) Deduction Made Permanent (Section 199A)

• 20% of QBI
• Specified Service Trade or Business (SSTB) Phase-out Range
  • Single Filers
    • Taxable Income beginning at a higher threshold, phased in over a $75,000 range
  • Married Filing Jointly
    • Taxable Income beginning at a higher threshold, phased in over a $150,000 range

Research & Development (R&D) to immediately expense (Section 174)

Domestic R&D Costs	Can be immediately and fully deducted in the year incurred.
Foreign R&D Costs	Remains Amortized over 15 years (incentivizing domestic R&D)
Software Development Costs	Permanently affirmed as R&D and can be immediately deducted.
“Catch-Up” Deduction	Businesses can elect to take a “catch-up” deduction for previously capitalized domestic R&D costs (from 2022, 2023, and 2024), either fully in 2025 or split between 2025 and 2026.
Small Business Retroactive Relief	Small businesses (generally those with average gross receipts ≤ $31 million) can amend prior returns (2022-2024) to claim the full deduction retroactively, potentially unlocking immediate refunds.

Business Interest Deduction to be more favorable (IRC Section 163(j))

• 30% of the taxpayer’s Adjusted Taxable Income (ATI) is based on Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), instead of EBIT.