Newsletter
August 2025 Newsletter
OBBBA: modified provisions
Seven business provisions changed by the One, Big, Beautiful Bill Act.
- Research and experimental expenditures: Eligible domestic research and development expenditures may be deducted immediately beginning after December 31, 2024. Special options may apply to certain small-business expenditures capitalized in earlier years.
- Business-interest limitation: The adjusted-taxable-income calculation for the 30% business-interest limitation was modified to account for depreciation, amortization, and depletion under the restored EBITDA-style approach.
- Section 179 expense: The maximum Section 179 deduction increased to $2.5 million and the phaseout threshold to $4 million, with inflation adjustments and other qualification rules.
- Advanced manufacturing investment credit: The credit rate increased from 25% to 35% for qualifying property placed in service after December 31, 2025.
- Opportunity Zones: A new permanent Opportunity Zone framework was created for future designation rounds. Timing, geography, and investment requirements should be reviewed against current Treasury and IRS guidance.
- Percentage-of-completion method: The law added an exception to the percentage-of-completion accounting requirement for certain qualifying residential construction contracts.
- Qualified Small Business Stock: The QSBS rules added partial exclusions for certain three- and four-year holding periods, increased the full exclusion cap to $15 million, and raised the gross-asset threshold to $75 million for eligible stock issued after enactment.
This summary is general information, not legal or tax advice, and may not reflect every exception or later update. Please contact the office before relying on a provision.
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