President Trump signed the 'One Big Beautiful Bill Act' (or OBBBA) on July 4, 2025. This tax bill has major impact on both individual and business taxpayers. There are also changes to estate taxes.
While there are dozens of changes in the tax law, the following is a summary of the most impactful provisions.
Bonus Depreciation
The OBBBA has extended the ‘bonus depreciation’ rules, which allows businesses to deduct the entire cost of certain asset purchases right away instead of spreading the deduction out over several years. Bonus depreciation was being phased out, but now it’s back at 100% permanently for things like machinery, vehicles, computers, and other equipment. For example, if a bakery buys a $50,000 oven, it can deduct the full $50,000 from its taxes in the year it buys it, rather than deducting a little bit each year. This means businesses get tax savings immediately, which helps free up cash to reinvest or grow faster.
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