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

Note: As of this writing, the “One Big Beautiful Bill Act of 2025” has passed the House but is still awaiting Senate approval. Provisions discussed below reflect the current House version and may change before final passage.

Tax law is once again on the move. The recently passed House version of the One Big Beautiful Bill Act of 2025 proposes several major updates to the tax code that could reshape how businesses structure operations, report income, and plan investments. While the bill is not yet law, understanding what’s inside—and what to prepare for—is a smart move.

At EZQ Group, we help businesses stay ready, not reactive. Here’s what business owners need to know now.

Corporate Tax Rate: Stability on the Horizon

One of the most impactful provisions of the bill is the continuation of the 21% corporate tax rate, originally introduced in the 2017 Tax Cuts and Jobs Act. Without new legislation, that rate is scheduled to increase in 2026.

Keeping the corporate rate low gives C corporations more certainty in tax planning and long-term forecasting. If you’re currently structured as an LLC or S corporation, it may also be time to evaluate whether a C corporation structure better serves your growth and reinvestment goals.

QBI Deduction Increased to 23%

The bill proposes raising the Qualified Business Income (QBI) deduction from 20% to 23%, which benefits:

S Corporations

LLCs taxed as partnerships

Sole proprietors

This deduction lowers the effective tax rate on pass-through business income. But like most tax benefits, it depends heavily on how your financials are structured and recorded. If your books don’t properly separate active and passive income or if you’re close to the phase-out thresholds, it’s worth conducting a full review.

Full Bonus Depreciation Returns

Under current law, the 100% bonus depreciation for equipment, vehicles, and software began phasing out in 2023. This bill would fully restore 100% immediate expensing under Section 168(k), allowing businesses to deduct the entire cost of qualifying property in the year it’s placed in service.

The bill also makes R&D expenses fully deductible again, reversing the rule requiring amortization over five years. That’s a significant change for tech-forward companies and manufacturers investing in innovation.

Businesses should consider whether it makes sense to accelerate planned equipment purchases before year-end to capitalize on this benefit.

SALT Deduction Cap Increase

For businesses operating in high-tax states, the State and Local Tax deduction cap has long been a constraint. This bill proposes increasing the cap from $10,000 to $40,000 for households earning under $500,000.

This could provide real savings for business owners whose income flows through to their personal tax returns. Proper tax planning and accurate bookkeeping are essential to fully benefit from this cap change.

Energy Credit Rollbacks

The bill rolls back or eliminates several energy-related tax credits, including:

Electric vehicle (EV) credits

Solar and wind energy incentives

Clean hydrogen and carbon capture subsidies

For companies pursuing environmental initiatives or fleet upgrades, this may alter the economics of future investments. It may also affect your existing capital plans if you’ve been relying on these credits for ROI calculations.

New Pressure on Nonprofits and Foundations

While this won’t impact every business, the bill includes an increase in excise taxes on large private foundations and university endowments. This reflects a broader trend: increased scrutiny on nonprofit financial management. If your business manages or donates through nonprofit channels, it’s a good time to reassess your structure.

Why Bookkeeping and Entity Planning Matter More Than Ever

Every benefit proposed in this bill depends on one thing: how well your books are kept and your company is structured.

Businesses that maintain clear financial records, categorize expenses correctly, and plan entity strategy thoughtfully are the ones best positioned to capitalize. On the other hand, businesses with outdated books, missing asset ledgers, or unclear income reporting may find that they leave money on the table—or worse, fall out of compliance.

At EZQ Group, we help clients get—and stay—financially prepared. Whether you need monthly bookkeeping, tax planning, or help choosing between an LLC or S Corp structure, we build accounting systems that support long-term growth.

What You Can Do Now

Although the bill isn’t law yet, businesses can start preparing by:

Reviewing depreciation schedules and capital purchase timing

Confirming that books are current, categorized, and ready for tax reporting

Evaluating whether their entity structure aligns with future growth and tax efficiency

Seeking proactive guidance to model different scenarios depending on the bill’s final form

Even if the bill changes, most of these steps are sound financial practice in any environment.

Get Ahead with EZQ Group

We work with businesses across industries to strengthen their financial foundations—so when new legislation comes, they’re ready.

If you need help catching up your books, reviewing your tax position, or forming a business entity that makes sense for your goals, EZQ Group is here to help.

Let’s get ahead of the changes—before they’re law.

Contact us today to schedule a consultation.