July 4th, 2025, saw even more fireworks than a typical Independence Day. That’s because on this commemorative day, the One Big Beautiful Bill Act was signed into law by President Donald Trump. For most Trump supporters, it was a landmark bill that promised to benefit business owners. For those who oppose Trump, it was perhaps a step backwards that the country didn’t need.
As accountants and tax planners, we went through the bill page by page to find out what’s REALLY in it. In this blog post, we strip out all of the biases and put a magnifying glass on the One Big Beautiful Bill from a business owner’s perspective. What’s in it? How does it benefit today’s business owners? And where does the bill fall a little short?
Why Business Owners Will Be Calling This Bill “Beautiful”
Tax Relief and Support for Small Businesses
- The 20% pass-through deduction originally signed into law in 2017 was set to expire at the end of 2025. The One Big Beautiful Bill Act (OBBBA) made this 20% deduction permanent, effectively reducing the top marginal tax rate on qualifying pass-through income from 37% to 29.6%.
- The OBBBA locks in the marginal income tax rate cuts initiated in 2017. Another win for small businesses.
- It allows businesses to expense equipment the year it was purchased rather than depreciating it over many years. This single measure improves cash flow and incentivizes investing and business growth.
- For agricultural businesses, the OBBBA protects family-owned farms by raising the estate tax exemption.
Support for U.S. Manufacturers
- For manufacturing, retail and supply chain businesses, the One Big Beautiful Bill includes favorable depreciation rules and tax breaks for domestic production.
- To encourage new plant construction in the U.S., the bill re-establishes full expensing and deduction. It allows these manufacturing businesses to deduct 100% of the cost of the building and production facilities in the first year, rather than depreciating them over 39 years.
Support for Employees of Small Businesses
- If your employees make tips, they will see the One Big Beautiful Bill as a win. Eligible tipped employees can deduct up to $25,000 annually in reported tip income.
- Do your employees receive overtime pay? Also included in the OBBBA is an overtime compensation deduction of up to $12,500 or $25,000 for married individuals filing jointly.
- Included in the OBBBA is an increased standard deduction, specifically $15,750 for single filers and $31,500 for joint filers.
Why Some Business Owners Might Consider Trump’s Bill to Be “Less Than Beautiful”
Of course, not all business owners are singing the praises of the One Big Beautiful Bill. There are a number of incentives that are either reduced or removed entirely. Here are a few areas in which the OBBBA may fall short for certain businesses.
- Loss of Tax Credits in Certain Business Sectors
- If you provide services in green industries (solar installation, renewable energy), this bill either reduces or strips out previously generous tax credits. This omission may directly impact your supply chains and sales.
- Cost Pressures from Low Income Consumers
- Because the OBBBA either cuts or restructures some social programs, including SNAP and Medicaid, businesses depending on lower income consumers may experience a decline in sales.
The Most “Beautiful” Plan for Your Business? Partner with Leone & Associate's for Your Tax Planning and Preparation
In this blog post, we summed up how President Trump’s One Big Beautiful Bill may impact your business, your taxes, your expenses, and your employees. It’s a pretty substantial bill that will have considerable implications across most every business and industry.
Rather than ignore this bill and let it “sneak up on you” at tax time, the team at Leone & Associates will walk you through it and share how it may directly affect your business. Schedule a consultation with us today — Call us at 856-536-3800.
