One Big Beautiful Bill — Key Individual Tax Changes to Businesses
Congress has officially passed President Donald Trump’s massive tax and spending bill — and it’s now on his desk, just one signature away from becoming law.
The Big Beautiful Bill makes the 2017 business tax cuts permanent and goes further by expanding key deductions for businesses. It boosts expensing limits, brings back 100% bonus depreciation, and locks in the 20% pass-through deduction. The bill also makes the R&D expensing rules more generous and provides relief for business interest deductions. A higher SALT deduction cap and permanent treatment of excess business losses are also part of the package. Here’s a quick look at how the Final version of the bill compares to current law.
Key Business Tax Changes – Current Law vs. Final Legislation
| Provision | Current Law | Final Legislation |
| Bonus Depreciation (168(k)) | Phases out by 2026 | Permanently allows 100% bonus depreciation for eligible property after Jan 19, 2025 |
| Expensing Limit (Section 179) | $1M limit | Raises to $2.5M (indexed for inflation), phases out at $4M starting 2025 |
| R&D Expenses (174) | Must be capitalized and amortized over 5 years | Allows immediate expensing for domestic R&D from 2025; retroactive relief for small businesses to 2022 |
| QBI Deduction (199A) | 20% deduction, expires 2025 | Makes 20% deduction permanent, expands phase-in thresholds: $150k (joint), $75k (single) |
| Business Interest Limit (163(j)) | Limited to 30% of adjusted taxable income | Permanently reinstates EBITDA cap; excludes certain foreign income from limit calculations |
| Excess Business Losses (461(l)) | Not allowed, expires 2028 | Makes permanent the limitation on excess business losses and increases the value of allowable loss carryovers or carrybacks. |
| Estate & Gift Exclusion | $13.61M (2024); expires 2025 | $15M exclusion starting 2026, indexed for inflation |
| State & Local Tax (SALT) Cap | $10,000 cap through 2025 | Raises cap to $40,000, phased out for income over $500k (joint); through 2029 |
This bill makes sweeping and long-lasting changes. It’s focused on cutting taxes, making prior breaks permanent, and boosting investment incentives.