Business Tax Highlights of the One Big Beautiful Bill

This article is one in a series on the One Big Beautiful Bill Act (OBBB) that was signed into law in July 2025. The bill represents the most significant tax legislation since the Tax Cuts and Jobs Act (TCJA) that became law in 2017. As we work to digest all of the details contained in the massive 1,100-page bill, we will post additional articles here.  

The OBBB was written with these priorities:

1. To extend or make permanent many of the provisions from the TCJA

2. To reduce green energy credits from the Inflation Reduction Act

3. To encourage American business by restoring favorable business tax provisions

4. To “put America first” by enacting permanent reforms to international provisions of the federal tax code

This article highlights some of the tax provisions contained in the OBBB which will affect many business taxpayers.

• Bonus Depreciation – permanently restores 100-percent bonus depreciation for short-lived investments

• Qualified Business Income Deduction – makes the Section 199A pass-through deduction permanent; increases the phase-in range of limitation by $100,000 for joint returns and $50,000 for all other filing statuses; creates a minimum deduction of $400 for taxpayers with $1,000 or more of QBI for material participants

• Research and Development – permanently restores immediate expensing for domestic R&D expenses; small businesses (with gross receipts of $31 million or less) can retroactively expense R&D back to tax year 2022, larger businesses can accelerate remaining deductions over a one- or two-year period

• Construction Expenses – temporarily allows for 100 percent expensing of qualified structures that begin construction between 01/20/2025 and 12/31/2028 and are placed in service by 12/31/2030

• Oil & Gas Exploration – requires intangible drilling and development costs to be considered in calculating adjusted financial statement income

• Energy Credits

  • Eliminates the clean electricity production credit (45Y) and investment credit (48E) for projects placed in service after 2027, with exceptions

  • Extends the clean fuel production credit (45Z) until 2040 and expands eligibility

  • Introduces restrictions for Foreign Entities of Concern (FEOC’s) for several other credits, including nuclear production (45U), clean fuel production (45Z) carbon oxide sequestration (45Q) and advanced manufacturing production (45Z)

Schreiber Accounting and Advisory is constantly monitoring tax legislation changes, and stands ready to help clients take advantage of opportunities for tax savings when they present. Check out the firm’s Tax Preparation and Planning services, and contact the firm for more information.

Material discussed is for informational purposes only. It is not to be interpreted as investment, tax, or legal advice. Individual situations vary, and this information should only be relied upon when coordinated with individual professional advice.