If you’re a small business owner, there’s a major shift in the tax landscape you should know about. On July 3rd, Congress passed the One Big Beautiful Bill Act (OBBBA)—a sweeping piece of legislation that will directly impact how individuals and businesses are taxed starting in 2025 and beyond. While some changes are subtle, others may create real planning opportunities—or surprises—if you’re not prepared.
We’re already digging deep into the fine print so you don’t have to. Over the next few months, we’ll highlight the most important pieces of this legislation in our newsletters and client conversations.
A Few Key Highlights from the OBBBA:
TCJA Made Permanent: Many of the individual tax cuts from the 2017 Tax Cuts and Jobs Act (TCJA)—which were set to expire in 2026—are now permanent. That includes lower tax brackets and the expanded standard deduction.
Bigger Deductions for Older Filers: Individuals age 65+ may now qualify for a temporary additional deduction of up to $6,000 through 2028 if their income falls below certain thresholds.
Temporary Breaks for Tipped and Hourly Workers: For 2025 through 2028, there's a new deduction of up to $25,000 for tips and $12,500 for overtime pay (double those amounts for joint filers). These provisions are already getting wide attention and could be especially valuable for businesses in hospitality, service, or retail.
More Generous SALT Cap (Temporarily): The state and local tax (SALT) deduction cap jumps to $40,000 in 2025 (from $10,000), before phasing back down after 2029. High-income earners may still face limitations.
Small Business Wins: The 20% deduction for pass-through income (Section 199A) is now permanent. Plus, 100% bonus depreciation is back for business equipment purchased after January 20th, 2025.
Next Steps
This is just the start. We’ll be breaking down what this means for your income, your business, and your tax planning—one piece at a time—through the rest of the summer. If you have questions, please feel free to reach out to the team at TrueBlaze