Big Beautiful Bill 2025 Explained: What Business Owners Need to Know

Big Beautiful Bill Founder Guide: How Entrepreneurs Can Navigate the New Law

September 15, 2025•3 min read

Big Beautiful Bill Founder Guide: How Entrepreneurs Can Navigate the New Law

The One Big Beautiful Bill Act (2025) is now law. It keeps most TCJA tax cuts in place, restores 100% bonus depreciation, allows immediate expensing of domestic R&D, adds deductions for tips and overtime, and temporarily raises the SALT cap to $40,000—with important limits and phase-outs. For founders, this is a window to free up cash flow and reinvest—if you know where the real levers are. Journal of Accountancy Congress.gov IRS+1 ADP

Recap: Who Wins, Who Loses (Founder Lens)

Likely Winners

Pass-through owners — The Sec. 199A QBI deduction is made permanent (rate stays 20%) and the phase-in ranges are expanded; more owners can qualify with the right structure and comp strategy. Congress.gov Journal of Accountancy
CapEx-heavy businesses — 100% bonus depreciation (Sec. 168(k)) is back for property acquired/placed in service on or after Jan 19, 2025; Sec. 179 limits also increased. Journal of Accountancy
U.S.-based innovators — New §174A lets you expense domestic R&D immediately (foreign R&D still amortized over 15 years). Journal of Accountancy
Service & hourly employers — New deductions for tips (up to $25k, with phase-outs) and overtime (generally up to $12.5k per filer, $25k MFJ; FLSA rules apply) can improve take-home pay and help retention. IRS+1
Owners in high-tax states — The SALT cap rises (temporarily) to $40,000 with phase-downs at higher MAGI. Coordinate with PTET choices. ADP

Potential Losers / Watchouts

Clean-energy and sustainability projects — Federal supports are curtailed/tightened; diligence your assumptions before green CapEx. Reuters
Everyone if you ignore the deficit — Nonpartisan estimates peg the 10-year deficit impact around $3.4T (more if temp cuts get extended), which raises the risk of future tax hikes. Bank today’s savings and build resilience. Bipartisan Policy Center CRFB

Checklist: 5 Steps to Get Ahead Under the New Law

1) Re-engineer entity & owner comp for QBI (and SALT/PTET).
Make the 20% QBI deduction permanent work for you: revisit reasonable comp, guaranteed payments, and aggregation. Coordinate the $40k SALT cap with PTET elections so you don’t give back what you just gained. Congress.gov ADP

2) Pull forward smart CapEx to capture 100% expensing.
If you planned equipment/tech in the next 18–24 months, model it now under Sec. 168(k) and Sec. 179. Consider EBITDA optics if you’re courting lenders or a buyer. Journal of Accountancy

3) Treat everyday improvement as R&D—and document it.
Under §174A, lots of “non-lab-coat” work can qualify: prototypes, internal software, process improvements, even method testing. Track time/costs by project, and keep U.S. activities clearly segmented from foreign work. Journal of Accountancy

4) Update payroll & HR playbooks (tips/overtime).
Train payroll to separately track qualified tips and overtime (W-2/1099 reporting rules apply). Use the benefit in recruiting—bigger take-home without raising base pay—while watching phase-outs at higher incomes. IRS+1

5) Build a “deficit hedge” into your financial plan.
Use 2025–2028 savings to strengthen cash reserves, lock favorable credit, and reduce fragile debt. If rates or taxes rise later, you’re ready. Bipartisan Policy Center CRFB

Where Founders Miss Hidden Tax Opportunities

QBI vs. comp — Paying yourself “the old way” often shrinks QBI.
SALT/PTET collisions — Uncoordinated state elections can nullify the SALT relief.
R&D blind spots — Teams do qualifying work but never tag it as R&D.
CapEx timing — Buying on the wrong side of a date or service-in window costs six figures.
Payroll reporting — If overtime/tips aren’t tracked correctly, the deductions are lost.
These mistakes are common because compliance pros look backward. Founders need forward-looking diagnostics.