Big Beautiful Bill: A C-Suite Cheat Sheet

So…what’s in there? With a big assist from analysis by the Journal of Accountancy, U.S. Chamber of Commerce, National Federation of Independent Business and the Tax Foundation (and some summarizing help from AI) here’s a rundown of the key items for businesses large, medium and small in the One Big Beautiful Bill Act (OBBBA) as it stood on Thursday, July 3 ahead of the House vote.

Big picture, it’s a win for business—and business owners. Itmakes many of the 2017 tax cuts permanent before they expire this year. Expanded deductions for R&D and manufacturing will certainly help that industry. Cutting taxes on tips could help restaurants by offsetting wage pressures. Similarly, anyone with hourly workers and big OT budgets could benefit from the tax cut on overtime.

Not every industry wins here, of course. Broader cuts to healthcare spending will almost certainly impact the sector. Same for carmakers betting on an EV future and anyone in green energy. And, of course, OBBBA increases the nation’s debt by more than $3 trillion, with likely impacts for the overall long-term health of the economy.

Here are the key areas for business in the legislation:

Ownership

No Expiration for Lower Individual Tax Rates: The reduced marginal tax rates introduced in 2017 would be made permanent. Without this, five of the seven tax brackets are set to increase. This is especially important for business owners who file at individual tax rates rather than as C corporations.

Bigger, Permanent Pass-Through Deduction: The qualified business income (QBI) deduction—also known as the 199A deduction—would increase from 20 percent to 23 percent and become permanent. This helps owners of pass-through businesses like LLCs, S corps and sole proprietorships reduce their taxable income beyond 2024.

Estate and Gift Tax Reforms: Starting in 2026, a permanent exemption level of $15 million and $30 million for couples would apply to both estate and gift taxes (indexed for inflation)—giving more flexibility to plan for succession without triggering major tax hits. (CNBC has a useful rundown of how the legislation will impact wealthy taxpayers.)

QSBS Exclusion Gets a Boost: Gains on Qualified Small Business Stock (QSBS) would get more favorable treatment. The per-company cap increases from $10 million to $15 million, and the corporate asset cap rises from $50 million to $75 million, both indexed to inflation.

International Taxes

Changes to International Business Tax Rules: The bill would: Lower the Foreign-Derived Intangible Income (FDII) rate from 37.5 percent to 33.34 percent. Reduce the Global Intangible Low-Taxed Income (eyeroll-inducing acronym: GILTI) rate from 50 percent to 40 percent. Slightly increase the base erosion minimum tax rate to 10.5 percent, starting after 2025.

Business Investment

Expensing Cap More Than Doubled: The Section 179 cap for immediate expensing of business equipment would rise from $1 million to $2.5 million. That means you could deduct the full cost of qualifying purchases in the first year, improving cash flow and simplifying tax planning.

Full Deduction for R&D Costs Restored: Domestic research and development costs could once again be fully deducted starting in 2025—and small businesses (with under $31 million in annual revenue) could apply this change retroactively to 2022.

Bonus Depreciation Made Permanent: Businesses could permanently write off 100 percent of the cost of qualifying assets (and certain crops) placed in service after Jan. 19, 2025.

Manufacturing Incentives Enhanced: A 100 percent bonus depreciation allowance would apply to certain real estate used in manufacturing. The investment tax credit for advanced manufacturing would increase from 25 percent to 35 percent starting in 2026.

Opportunity Zones Made Permanent, With Tweaks: The popular program would continue indefinitely, but with a narrower definition of which areas qualify. Most of the changes would take effect in 2027.

Expanded Interest Deduction for Equipment Dealers: Businesses could calculate taxable income without subtracting depreciation, amortization, or depletion. Also, interest on floor plan loans for trailers and campers would qualify for deductions.

Employees and Benefits

Permanent Credit for Paid Family Leave: The employer tax credit for providing paid family and medical leave would no longer be temporary—it would become a permanent part of the tax code.

New Deductions for Tipped and Overtime Workers: A temporary deduction of up to $25,000 would be available for tip income in traditionally tipped jobs. A separate deduction of up to $12,500 ($25,000 for joint filers) would apply to qualified overtime compensation, phasing out for high earners.Expanded Childcare Tax Credit for Employers: The tax credit for employer-provided childcare would grow from $150,000 to $500,000, covering up to 40 percent of eligible costs. For small businesses, the credit would go as high as $600,000 and cover 50 percent of expenses. All thresholds would be adjusted for inflation over time.