Empowering Healthy Business Podcast Episode 38 : Tax Changes in the “Big Beautiful Bill”

In this insightful episode, a major piece of legislation, the so-called Big Beautiful Bill, is making its way through Congress, and it carries big implications for small business owners. While the bill has not yet become law, its proposed tax changes could reshape how entrepreneurs plan, invest, and manage their businesses. From expanded deductions to incentives for equipment purchases, the bill aims to stimulate economic growth by reducing tax burdens. For those in high-tax states or running capital-intensive businesses, this bill could unlock significant financial benefits. Business owners must understand what’s inside the bill and begin preparing now for what may lie ahead.

One of the most talked-about provisions is the increase in the SALT (State and Local Tax) deduction, which would jump from $10,000 to $40,000. This is a substantial benefit for individuals and business owners in states with high property or income taxes. Another key highlight is a boost to the 199A Qualified Business Income deduction, increasing it from 20% to 23% for pass-through entities like LLCs and S-Corps, resulting in real tax savings for many entrepreneurs. If your business is asset-heavy or planning major purchases, you’ll want to pay attention to the return of 100% bonus depreciation, which would apply to property placed into service after January 19, 2025. Additionally, Section 179 expensing limits would expand to $2.5 million, with phaseouts beginning at $4 million. These provisions allow businesses to write off large equipment costs in the year of purchase, rather than over time.

Key Provisions in the Big Beautiful Bill Tax Changes

• SALT Deduction Increase: From $10,000 to $40,000—great news for taxpayers in high-tax states.
• 199A Deduction Boost: Raises the QBI deduction from 20% to 23% for pass-through businesses.
• Bonus Depreciation Returns: Full expensing of assets placed into service after January 19, 2025.
• Section 179 Expansion: Increased limit of $2.5 million in immediate expensing, with phaseouts at $4 million.
• Personal Tax Adjustments: Tip and overtime taxes eliminated, EV mileage tax proposed, clean energy credits reduced.