Six "Big, Beautiful" Tax Wins for Small Business Owners In the OBBBA

This sweeping bill permanently extends many TCJA provisions while introducing powerful new incentives specifically designed to support American business growth. Here are six particularly compelling tax wins that every small business owner should understand and implement. 

1. Permanent 100% Bonus Depreciation 

The Act provides permanent 100% bonus depreciation for qualified property acquired after January 19, 2025. Purchase $150,000 in qualifying equipment and deduct the entire amount immediately. At a 32% tax rate, that's $48,000 in immediate savings.

This permanent provision eliminates the uncertainty we've faced with temporary phases. I now advise clients to coordinate major equipment purchases with their cash flow planning, knowing this benefit will be available long-term.

2. Supercharged QSBS Benefits

For C-Corporation stock issued after enactment, the QSBS rules now offer:

• Tiered exclusions: 50% after 3 years, 75% after 4 years, 100% after 5+ years
• Increased cap: $15 million per issuer (up from $10 million)
• Higher asset threshold: $75 million gross assets (up from $50 million)

Planning to sell your C-Corp in three years? You can still achieve 50% federal tax exclusion on gains up to $15 million. This creates tremendous flexibility for exit planning.

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3. Permanent 20% QBI Deduction (Enhanced)

The QBI deduction is now permanent with improved benefits:

• Phase-in thresholds increased by $25,000/$50,000
• Minimum $400 deduction for businesses with $1,000+ of qualified income
• No more expiration uncertainty

This means, for example, that a business generating $300,000 in qualified income can deduct $60,000 (married filing jointly), saving $15,000-$20,000 in taxes.

4. Immediate R&D Expensing Returns

After three painful years of required amortization, domestic R&D expenses are immediately deductible again. Plus, you can accelerate remaining amounts from 2022-2024. If you've held back on innovation investments due to unfavorable tax treatment, this removes that disincentive entirely. Innovation gets rewarded again.

5. Better Business Interest Deduction

The Act permanently restores the more favorable EBITDA-based interest limitation (30% of EBITDA vs. EBIT). This is huge for capital-intensive businesses with significant debt. More of your interest expense becomes currently deductible, making debt financing more attractive for expansion and acquisitions.

6. Permanent Opportunity Zones

OZ benefits are now permanent. These benefits allow business owners to: defer gains for 5 years when invested in Qualified Opportunity Funds; take a 10% basis step-up after 5 years; and achieve complete gain exclusion after 10 years. This is perfect for coordinating with business sales or real estate dispositions. With permanent status, you can plan long-term without program expiration concerns.

The WHZ Integration Strategy

What makes these provisions powerful is how they work together. At WHZ, our "Plan Well. Invest Well. Live Well.™" process helps clients integrate these benefits with broader wealth strategies.

I've watched too many business owners focus solely on minimizing taxes without considering how those savings build long-term wealth. Every dollar saved through these provisions becomes capital for retirement planning, emergency reserves, or diversification outside your business.

Key Coordination Points & Why Business Owners Should Act Now

With most provisions effective immediately, 2025 is a critical planning year. The business owners who implement these strategies now—while maintaining proper compliance—will capture the most significant benefits.

Key strategic actions may include:

• Timing equipment purchases to maximize bonus depreciation benefits
• Evaluating whether QSBS planning should influence your business structure
• Considering how enhanced QBI benefits affect your compensation strategy
• Integrating OZ investments with exit planning and wealth diversification

The One Big Beautiful Bill Act provides unprecedented opportunities, but only for those who understand and act on them properly. Given the complexity and potential impact, working with experienced advisors ensures you maximize these "big, beautiful" tax wins while staying compliant.

Schedule a complimentary discovery session with our team to see how we can help you leverage these new opportunities to their fullest.

Authored by Senior Partner, Chief Strategist James Zahansky, AWMA®. AI may have been utilized for some research and initial drafting of this piece. . For your specific investment needs, please discuss your individual circumstances with your representative. Commonwealth Financial Network® or WHZ does not provide legal or tax advice. Please consult a legal or tax professional regarding your individual situation.  Securities and advisory services offered through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. 697 Pomfret Street, Pomfret Center, CT 06259 and 392-A Merrow Road, Tolland, CT 06084, 860.928.2341. http://www.whzwealth.com.