The recently passed One Big Beautiful Bill Act (OBBB) brings several impactful tax changes that may benefit your business. Here’s a quick summary of what you should know.
Section 179: Expanded Deduction Limits
- Deduction limit increased to $2.5 million for equipment placed in service after December 31, 2024.
- Bottom line for 2025: You can deduct up to $2.5M in qualified equipment purchases, significantly higher than the $1.22M limit in 2024.
Continued Pass-Through Deduction
- The 20% pass-through deduction for qualified business income is now permanent.
- Helps sole proprietors, S corps, and partnerships keep more of their earnings.
R&D and Manufacturing Support
- Domestic R&D expenses can now be fully expensed—no more multi-year amortization.
- Manufacturing assets placed in service through 2032 qualify for full bonus depreciation.
Did you know that: Real Examples
- A food packaging company installed smart conveyor systems qualified for Section 179 + utility rebate
- A MedTech firm prototyped a new surgical device received 12% back in R&D tax credits
- A contractor upgraded servers for CAD renderings qualified for local innovation incentives