The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, is a sweeping piece of legislation that reshapes the tax landscape for individuals and businesses across the country. For small business owners and self-employed professionals, the bill presents new opportunities to save on taxes—but also some important challenges to plan for. At Abundant Returns Tax Service, we’re breaking down how this bill could affect your bottom line.
1. Small Business & Self-Employed Impacts
a. Full Expensing Made Permanent
OBBBA makes 100% bonus depreciation a permanent part of the tax code. This means small business owners can immediately deduct the full cost of qualifying equipment, machinery, and even some software in the year it was purchased, rather than depreciating it over several years. If you’re planning capital purchases, now might be the right time to act.
b. R&D and Startup Incentives Expanded
For entrepreneurs and innovators, the bill increases the scope and benefits of the R&D tax credit. Startups, especially in the tech, manufacturing, and service sectors, may see faster returns thanks to higher Qualified Small Business Stock (QSBS) thresholds and broader eligibility for tax-free gains when selling shares.
c. Payroll Tax Adjustments and Credits
While One Big Beautiful Bill simplifies payroll tax filing for some small businesses, it also eliminates certain pandemic-era credits. However, new incentives now apply to businesses that provide apprenticeships, technical training, or hire from underrepresented communities. It’s a great time to revisit your hiring strategy.
d. “Trump Accounts” for Kids
This new savings vehicle allows parents to invest in tax-deferred accounts for their children, which grow tax-free until age 18. If you’re a self-employed parent or run a family business, these accounts could become part of your long-term financial strategy.
2. What’s Going Away or Shrinking
a. SALT Cap Adjustments (Temporary Relief)
The state and local tax (SALT) deduction cap has been raised to $40,000 for households earning under $500,000. This offers temporary relief for some business owners but will revert after five years unless extended.
b. Renewable Energy Credits Phased Out
If you are considering investing in solar panels, electric vehicles, or energy-efficient upgrades, note that many federal credits are being phased out. These incentives will disappear over the next few years, making 2025 one of the last tax years to claim them.
c. ACA Subsidy and Medicaid Cuts
If you or your employees rely on Affordable Care Act plans or Medicaid, be aware that funding cuts may lead to higher premiums or fewer coverage options. This could affect your employee benefits planning.
3. Potential Risks to Watch
a. Increased IRS Oversight
To offset revenue losses from the tax cuts, the IRS is expanding enforcement. Small businesses and self-employed taxpayers may face greater scrutiny, particularly around deductions and contractor classifications.
b. Future Tax Increases?
While many tax breaks are generous now, the growing federal deficit could trigger higher taxes in future years. Planning ahead is critical.
c. Complexity and Compliance Costs
With new credits and eliminated deductions, tax compliance could become more complicated. Investing in professional tax planning and bookkeeping is more important than ever.
4. How Abundant Returns Can Help
At Abundant Returns Tax Service, we specialize in helping entrepreneurs and self-employed professionals navigate changing tax laws. Here’s how we can support you:
- Maximize deductions with a personalized review
- Set up tax-smart retirement and savings plans (including Trump Accounts)
- Ensure compliance with new reporting and payroll rules
- Plan capital purchases to take full advantage of expensing rules
- Adjust quarterly tax payments in light of new changes
Bookkeeping, payroll, and proactive planning are no longer optional—they’re essential tools to thrive in the post-One Big Beautiful Bill world.
5. Conclusion
The One Big Beautiful Bill Act brings with it a host of new rules, benefits, and risks. While it offers immediate savings and investment incentives, it also introduces long-term uncertainties. By staying informed and working with a trusted tax partner, you can turn this new legislation into a strategic advantage for your business.
Ready to update your tax strategy? Contact Abundant Returns today to schedule your tax planning session and keep more of what you earn.
