Following the passage of the One Big Beautiful Bill Act (OBBBA) in summer 2025, most news coverage focused on the wide-ranging impacts to individual taxpayers. However, the new federal legislation also contains various provisions aimed at providing tax relief for U.S. businesses and corporations.

From deductions to expense rules, here are some of the key business-related changes in the OBBBA, and what they could mean for your company.

QBI deduction: The OBBBA revived and permanently extended the 2017 Tax Cuts and Jobs Act’s (TCJA) qualified business income (QBI) deduction of 20%. By restoring the deductible amount to 20%, this change aims to provide tax certainty for qualified businesses.

Bonus depreciation: A 100% first-year bonus depreciation was included in the OBBBA for qualified property placed in service after Jan. 19, 2025. This could provide immediate tax savings on new equipment or machinery and encourage businesses to make additional capital investments.

Section 179 expensing: The OBBBA increased the maximum business expense amount to $2.5 million, nearly double the previous limit of $1.22 million. As a result, businesses now can deduct more from the cost of qualifying capital equipment or building improvements.

Research and development (R&D) expenditures: Another provision of the OBBBA allows for the immediate deduction of domestic research and development expenses paid or incurred starting in 2025, with some limited deductions for R&D expenses incurred between 2021 and 2025. In other words, companies now can write off domestic R&D costs more quickly, potentially incentivizing innovation and development.

Third-party network transaction reporting threshold: The OBBBA updated reporting rules for form 1099-K, Payment Card and Third-Party Network Transactions. Reporting is now required if transactions exceed $20,000 and the aggregate number of transactions exceeds 200, potentially helping to cut down on necessary administrative work related to third-party payments.

Form 1099 reporting threshold: Similarly, the OBBBA increased the information reporting threshold for payments for services to $2,000 in a calendar year starting in 2026 (up from $600 in 2025).

Renewed opportunity zones: TCJA opportunity zone provisions, which were meant to encourage investment in distressed areas, were also made permanent. Several changes were added to the policy, including narrowing the definition of “low-income community.” The changes generally will take effect in 2027 and could affect whether businesses qualify for tax incentives on new community projects.

Impacts on Your Business

Overall, these and other OBBBA provisions aim to provide some tax clarity for businesses, reduce regulatory and reporting requirements and encourage capital investments across the country. To better understand what these changes may mean for you, and how your business can take advantage of the new legislation, contact your wealth advisor. We can help walk you through these changes and work with you and your tax and legal advisors to create a strategy that’s appropriate for you.

This article has been written for the general information of clients and friends of Bell Bank. It is not intended, nor may it be relied upon, as tax or legal advice with respect to any matter. It also cannot be used by a taxpayer for the purpose of avoiding penalties that may be imposed by the Internal Revenue Service or other taxing authorities.