President Trump’s Big Beautiful Bill, passed over the summer, has brought significant tax benefits to Main Street businesses. While some of these benefits have already begun, many small businesses may have missed opportunities for substantial bottom-line savings. According to Jeffrey Kelson, co-leader of EisnerAmper’s National Tax Office, the bill offers various tax law deductions, some as high as 100% of costs, which can greatly benefit small businesses.<\/p>\n
The favorable tax measures in the bill are not entirely new, as some had been phased out or were set to sunset but have now been resurrected. Melanie Lauridsen, vice president of tax policy and advocacy with the American Institute of Certified Public Accountants, notes that many provisions in the bill are particularly favorable to Main Street companies and local economies. Although there are still some unknowns, given that the Treasury Department and the IRS have yet to release regulations and guidance on the bill’s implementation, it is overall seen as a boon for small businesses.<\/p>\n
Small businesses can now deduct 100% of the cost of new computers, machinery, or other equipment in many cases. This is a significant jump from the old 40% deduction, according to Ken Webster, chief executive of Rocket Legal Professional Services. The perk applies to assets bought on or after January 20, 2025, and businesses may already qualify for bigger deductions on recent purchases. It is advisable to speak to a tax advisor to maximize these write-off options and potential state tax advantages.<\/p>\n
The new law encourages domestic research and development by allowing small businesses to immediately deduct 100% of domestic R&D costs incurred after 2024. This is a huge relief for many taxpayers who were negatively impacted by the 2017 Tax Cuts and Jobs Act, according to Diana Walker, a director with Baker Tilly’s tax practice. Small businesses can also get credit for previous domestic R&D expenses by amending previous returns or opting for other methods, and should consult their tax advisor to determine the best approach.<\/p>\n
The Big Beautiful Bill revived a more generous calculation for deducting interest, which can benefit small businesses taking on loans or other forms of debt. Starting with tax years that begin after December 31, 2024, the legislation brings back the EBITDA-based limitation, allowing for higher interest deductions than under the EBIT-based system. This can help small businesses deduct interest and reinvest the savings into their business, according to Colin Wilhelm, policy analyst in the Washington National Tax Office at Grant Thornton.<\/p>\n
The bill also includes a provision that allows small businesses to deduct up to $25,000 in tips annually through 2028. However, there are exceptions, such as self-employed individuals who cannot deduct more than their net income from the business that earned the tips, and individuals with a modified adjusted gross income over $150,000 for individual taxpayers and $300,000 for joint filers. Businesses attempting to claim this deduction should keep careful records of tips, as there may be more scrutiny from the IRS.<\/p>\n
The popular Qualified Business Income (QBI) deduction is now permanent, allowing sole proprietors, partners, and S corporation shareholders to deduct 20% of their business income, with certain exceptions. The Big Beautiful Bill makes it easier for higher-income small business owners to claim this deduction, expanding the income ranges for eligibility starting next year. An eligible business with at least $1,000 in active business income is guaranteed a minimum $400 deduction, which will increase with inflation each year.<\/p>\n
All businesses providing employee child care are eligible for a tax credit, with expanded benefits for small businesses with less than $31 million in gross receipts for 2025. Eligible small businesses can claim up to $600,000 and 50% for expenses, and should evaluate options for providing or expanding employee child-care benefits or programs, according to the U.S. Chamber of Commerce.<\/p>\n
To maximize the benefits of the Big Beautiful Bill, small businesses should consult with a tax advisor to ensure they are taking advantage of all eligible deductions and credits. For more information on the tax cuts and how they can impact small business income, visit Here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Introduction to the Big Beautiful Bill President Trump’s Big Beautiful Bill, passed over the summer, has brought significant tax benefits to Main Street businesses. While some of these benefits have already begun, many small businesses may have missed opportunities for substantial bottom-line savings. According to Jeffrey Kelson, co-leader of EisnerAmper’s National Tax Office, the bill […]<\/p>\n","protected":false},"author":1,"featured_media":897,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/image.cnbcfm.com\/api\/v1\/image\/108168011-17516663832025-07-04t215749z_1691177678_rc2xffazfsw2_rtrmadp_0_usa-trump.jpeg?v=1751666447&w=1920&h=1080","fifu_image_alt":"","footnotes":""},"categories":[24],"tags":[],"class_list":{"0":"post-896","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-small-business"},"_links":{"self":[{"href":"https:\/\/sosahustle.com\/blog\/wp-json\/wp\/v2\/posts\/896","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sosahustle.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sosahustle.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sosahustle.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sosahustle.com\/blog\/wp-json\/wp\/v2\/comments?post=896"}],"version-history":[{"count":1,"href":"https:\/\/sosahustle.com\/blog\/wp-json\/wp\/v2\/posts\/896\/revisions"}],"predecessor-version":[{"id":898,"href":"https:\/\/sosahustle.com\/blog\/wp-json\/wp\/v2\/posts\/896\/revisions\/898"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sosahustle.com\/blog\/wp-json\/wp\/v2\/media\/897"}],"wp:attachment":[{"href":"https:\/\/sosahustle.com\/blog\/wp-json\/wp\/v2\/media?parent=896"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sosahustle.com\/blog\/wp-json\/wp\/v2\/categories?post=896"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sosahustle.com\/blog\/wp-json\/wp\/v2\/tags?post=896"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}