The One Big Beautiful Bill: What It Means Now That It's Law

On July 4th, 2025, President Trump signed what is now simply referred to as "the bill" into law. Though its name didn’t survive the Senate, the provisions that matter most to business owners, investors, and advisors did. The legislation marks one of the most consequential tax shifts in recent years. And now that it's law, it's not just time to understand what changed—it's time to act. 

The new tax law rewards proactive moves. Plan strategically, invest smartly, and build your advantage.

Bonus Depreciation Returns—Permanently 

For qualifying property acquired after January 19, 2025, businesses can now expense 100% in year one. Equipment, software, vehicles—if it qualifies, it can be written off immediately. This is more than an accounting benefit; it’s a cash flow strategy that rewards timely investment and infrastructure. 

Section 199A: The QBI Deduction Locked In 

The 20% qualified business income deduction is no longer at risk. Not only is it permanent, but the law also expands eligibility. With this expansion comes complexity. Business owners structured as S corporations, partnerships, or even high-earning sole proprietors must revisit compensation strategies and entity structure to fully capitalize on the deduction. 

R&D Deduction—Revived and Retroactive 

Domestic research expenses are now fully deductible again. And for small businesses (under $31 million in gross receipts), this applies retroactively back to 2022. If you’ve previously amortized R&D expenses or paired them with the research credit, it may be time to amend old returns and claim refunds. Foreign-based R&D, however, still must be amortized under existing law. 

Section 1202: A New Path to Tax-Free Exits 

For qualified small business stock (QSBS) acquired after July 4, 2025, the tax-free exclusion is now tiered: 50% after three years, 75% after four, and 100% after five. Additionally, the per-issuer gain cap has increased from $10M to $15M, indexed to inflation. With a raised asset ceiling of $75M, more companies now qualify. This makes C corporations significantly more appealing to growth-minded founders and investors aiming for efficient exits. 

SALT Deduction Cap—Temporarily Loosened 

From 2025 through 2029, the SALT cap increases to $40,000 for those who itemize—but the benefit quickly phases out for individuals earning over $500,000, vanishing entirely by $600,000 AGI. From 2030 onward, the baseline $10,000 cap returns. For owners of pass-through entities, however, state-level PTET elections remain a viable workaround. In high-tax states like California, this planning lever could retain its importance—if state law stays aligned. 

What This Means for You 

The One Big Beautiful Bill is no longer a proposal—it’s active legislation. Its most valuable features are already in effect or begin phasing in this year. For business owners, this means the time for reactive planning is over. Whether you’re investing in growth, preparing for sale, or seeking to optimize compensation and R&D claims, now is the time to engage. 

A strategic review of your tax structure in light of these changes isn’t just prudent—it’s essential. 

To discuss how this bill could affect your business, visit www.tandvllp.com/tax-planning.