The “big, beautiful bill” passed — and it includes major wins for ABMA’s tax priorities. Here’s a quick cheat sheet on what business owners need to know.
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| Provision | What Changed | Who Benefits | What it Means |
|---|---|---|---|
| Section 179 Expensing | Cap raised to $2.5M, indexed for inflation | All businesses investing in physical assets like equipment, vehicles, or software. | Lets you immediately write off up to $2.5M in business purchases (tools, machinery, etc.). |
| Bonus Depreciation | Restored to 100% and made permanent | All businesses investing in equipment, machinery, vehicles, and other physical assets. | Deduct the full cost of big purchases right away instead of over years. |
| QBI Deduction (Pass-throughs) | 20% deduction made permanent | LLCs, S-corps, sole proprietors | Keep deducting 20% of business income if you’re not a C-corp. |
| Overtime Tax Deduction | Up to $12,500/year exempt for employees (2025–2028) | Employees | The “half” in “time-and-a-half” won’t be taxed for employees. |
| Tip Income Deduction | Up to $25,000/year exempt for employees (2025–2028) | Employees | Tips won’t be taxed as income for workers up to $25K/year. |
| Estate Tax Exemption | Raised to $15M individual / $30M joint | Family-owned businesses | Helps pass the business to the next generation without big estate taxes. |
| QSBS (Startup Stock) | Tax-free gain exclusion raised to $15M; faster timeline (3–5 yrs) | Startups and investors | Investors can avoid tax on up to $15M in startup stock after holding for a few years. |
| Corporate Tax Rate | Stays at 21% | C-corporations | Keeps taxes low for larger corporations. |
| R&D Expensing | Allows immediate deduction of domestic R&D costs | Innovative businesses | You can now fully deduct research costs in the same year. |
| Corporate Transparency Act (CTA) | Reporting requirement for small businesses repealed (starting 2026) | Small LLCs and closely held firms | You no longer need to report company owners to the federal government. |
