Congress has just passed comprehensive new tax reform legislation and was signed into law on July 4th, 2025. This will significantly impact taxes for everyone. Generally The One Big Beautiful Bill Act includes favorable tax provisions and here are the key provisions:<\/b><\/p>\n100% BONUS DEPRECIATION\u00a0applying to property acquired after January 19, 2025- Write Off Equipment Immediately<\/b><\/h4>\n
When you buy equipment, machinery, or other business property, you can now deduct the entire cost in the year you buy it. For example, if you buy a $100,000 machine for your business, you can deduct the full $100,000 this year instead of spreading it over many years. This also applies to used equipment you purchase.<\/p>\n
Transitional Provisions: The bill includes a transitional election to elect a reduced percentage (40% or 60%) for property placed in service in the first taxable year ending after January 19, 2025.<\/p>\n
The One Big Beautiful Bill Act\u00a0enhances Section 199A by making it permanent and broadening the phase-out ranges.<\/p>\n
Limits increase from $1 million to $2.5 million with phase-out beginning at $4 million.<\/p>\n
Research and development costs can be immediately deducted rather than amortized over 5 years.<\/p>\n
The One Big Beautiful Bill Act\u00a0provides for 100% immediate write-off for construction of domestic manufacturing facilities.<\/p>\n
From $2,000 to $2,200 per child (partially refundable).<\/p>\n
State and local tax deduction increases to $40,000 (joint filers) from $10,000, though phases down for incomes above $500,000.<\/p>\n
FSA limit increases to $7,500; child care credit percentages improved.<\/p>\n
The One Big Beautiful Bill Act\u00a0provides for “Trump Accounts” for children with tax-free growth and expanded 529 plan eligible expenses.<\/p>\n
The $15 million per person is made permanent.<\/p>\n
Most energy credits (EVs, solar, energy efficient improvements) terminate between September 2025 and December 2027.<\/p>\n
If you need a good CPA firm for your business that works with you throughout the year, not only at tax time, contact us<\/a>.<\/p>\n Please note that this blog post is for informational purposes only and does not constitute tax, legal or accounting advice and that new changes in rules and regulations may render this content out of date.<\/p>\n