What the One Big Beautiful Bill Could Mean for Your Business (2025 Preview)

Note: As of this writing, the “One Big Beautiful Bill Act of 2025” has passed the House but is still awaiting Senate approval.

Lower Taxes, Bigger Deductions, and Why Now Is the Time to Review Your Financial Strategy

Tax law is changing. The proposed legislation includes several major updates to the tax code affecting business operations, income reporting, and investment planning.

Corporate Tax Rate: Stability on the Horizon

The 21% corporate tax rate would continue under this legislation. This rate was originally established in 2017 and would otherwise increase in 2026. This provides certainty in tax planning and long-term forecasting for C corporations and may warrant evaluation of business structure for LLCs and S corporations.

QBI Deduction Increased to 23%

The qualified business income deduction would rise from 20% to 23%, benefiting:

• S corporations
• LLCs taxed as partnerships
• Sole proprietors

This depends on proper financial structuring and recording.

Full Bonus Depreciation Returns

The bill would restore 100% immediate expensing under Section 168(k) and make R&D expenses fully deductible, reversing prior five-year amortization requirements.

Qualifying property includes:

• Equipment and machinery
• Vehicles (with limits)
• Qualified improvement property
• Certain software

SALT Deduction Cap Increase

The State and Local Tax deduction cap would increase from $10,000 to $40,000 for households earning under $500,000.

Energy Credit Rollbacks

The legislation eliminates several energy-related credits including:

• EV incentives
• Solar/wind energy incentives
• Clean hydrogen credits

New Pressure on Nonprofits and Foundations

The bill increases excise taxes on large private foundations and university endowments.

Why Bookkeeping and Entity Planning Matter More Than Ever

Every tax benefit in this bill depends on proper record-keeping and entity structure. Without clean books and compliant filings, you may not be able to claim what you’re entitled to.

What You Can Do Now

Four recommended preparatory steps:

1. Review depreciation schedules and capital purchase timing
2. Confirm current, categorized books are in order
3. Evaluate entity structure alignment with new provisions
4. Seek proactive guidance for scenario modeling

Get Prepared

Whether you need bookkeeping support, tax position analysis, or entity formation guidance, EZQ Group is ready to help you navigate the changing landscape.

Contact EZQ Group today to schedule your consultation.