Big Changes Coming Your Way: How the "One Big Beautiful Bill Act of 2025" Could Impact Your Small Business

Big Changes Coming Your Way: How the "One Big Beautiful Bill Act of 2025" Could Impact Your Small Business 

If keeping up with tax law changes feels like tracking these unpredictable weather patterns we’ve been experiencing lately, you're not alone. Luckily, we've done the heavy lifting to break down the newly passed "One Big Beautiful Bill Act of 2025" (OBBBA) and explain what it means for you, your team, and your bottom line. 

1. Changes to Business Investment Deductions 

OBBBA permanently restores the 100% first-year bonus depreciation. In simple terms, if you're planning to buy new equipment or assets (think espresso machines or delivery vans), you can deduct the full cost in the first year. 

2. Employer Tax Credit for Family and Medical Leave 

Here at APS, we recognize how important family and health benefits are to employers and employees alike. The OBBBA permanently establishes an employer tax credit for paid family and medical leave, making it financially easier for businesses to support their teams during significant life events. 

3. Temporary Deductions for Tips and Overtime 

From 2025 through 2028, the OBBBA provides temporary deductions for qualified overtime pay (up to $12,500 for individuals and $25,000 for joint filers) and tip income (up to $25,000). This change aims to help businesses financially when rewarding employees who regularly earn tips or put in overtime hours. 

4. Introducing Trump Accounts for Savings 

The OBBBA introduces "Trump Accounts," a new form of tax-advantaged savings accounts for children born between 2025 and 2028. These accounts start with an initial government contribution, and additional annual contributions can come from family and employers. The funds can be accessed by the child at age 18 for specific uses like education, business startup, or buying a home. 

5. Temporary Deduction for American-Made Auto Loans 

From 2025 to 2028, the act allows taxpayers to deduct up to $10,000 of interest paid on loans for American-made passenger vehicles purchased for personal use, potentially impacting decisions for vehicle purchasing and financing. 

6. Adjusted SALT Deduction Cap

The previously established $10,000 cap on State and Local Tax (SALT) deductions increases to $40,000 for 2025 but gradually decreases back to $10,000 by 2030. This change provides temporary flexibility for taxpayers managing state and local tax obligations. 

7. New and Enhanced Deductions for Seniors and Dependents 

OBBBA includes a temporary deduction for seniors ($6,000 for individuals, $12,000 for joint filers), a permanently increased child tax credit ($2,200 per child), and a permanent $500 credit for other dependents. These adjustments provide potential financial relief to employees managing family responsibilities. 

Additional Key Points: 

● Permanent Tax Brackets: TCJA tax brackets and standard deductions are now permanent. 

● Senior Deduction: Temporary deduction specifically designed for taxpayers aged 65 or older. 

● Scholarship Donations: New tax credits for donations to scholarship organizations starting in 2027. 

Navigating tax changes doesn’t have to feel overwhelming. The One Big Beautiful Bill Act of 2025 introduces several tax-related provisions that could impact your financial planning, employee benefits, and business operations. As always, we're here at APS to help you understand and manage these changes, so you can stay focused on your business goals.