On July 4, 2025, President Trump’s “One Big Beautiful Bill Act” (OBBB) was officially signed into law. This new legislation particularly restores two major tax benefits from the Tax Cuts and Jobs Act (TCJA), both now made permanent.
These tax relief measures from the TCJA are not entirely abolished by the end of this year but rather made permanent:
100% Bonus Depreciation (Full Expensing)
Applies to eligible property acquired after January 19, 2025. This means upfront tax break as businesses can immediately deduct the full cost of qualifying new or used equipment and other capital investments. For your business, this means:
- Significant tax deduction for capital expenditures.
- Incentives to invest in new equipment and technology.
Section 199A Qualified Business Income (QBI) deduction
This is a massive win for pass-through entities like sole proprietorships, partnerships, and S corporations, as they can continue deducting up to 20% of their qualified business income.
This permanent extension provides much-needed stability for many small and medium-sized businesses operating as pass-through entities.
While the primary focus is on the permanent restoration of the two TCJA reliefs, the OBBB Act also includes changes to the rules regarding charitable contribution deductions for corporations, which will be announced in more detail soon.
What You Need to Do Now
- If you’re considering investing in new equipment or other eligible property, the permanent full expensing provision offers you significant tax relief from now on.
- If you’re a pass-through business owner, you can continue to benefit from the extended Section 199A QBI deduction.
Above all, stay informed! This “One Big Beautiful Bill Act” is a game changer for your business. You can take advantage of these permanent tax benefits to fuel your business’s growth.
Legend Fusions is here to provide further updates and analysis on the implications of the OBBB Act, including the changes to corporate charitable contributions.
Need help with leveraging these tax breaks? Contact Legend Fusions today!
Hira Asif
Hira Asif, Client Manager (US) at Legend Fusions, brings over 11 years of tax expertise, including 8 years with Ernst & Young. Her work focuses on tax advisory, compliance, and planning for individuals, partnerships, and private equity funds. With a deep knowledge of federal, state, and local tax regulations, Hira is skilled in identifying tax planning opportunities and reviewing corporate and partnership tax returns to optimize compliance and reduce exposures.