What the New Tax Law Means for Business Owners
Marketing Strategist
The One Big Beautiful Bill Act, Explained Simply
On July 4, 2025, President Donald Trump signed what’s commonly referred to as the One Big Beautiful Bill Act (the Act) into law, making sweeping changes to the U.S. tax code – many of which directly affect small and mid-sized business owners. This legislation extends several provisions from the 2017 Tax Cuts and Jobs Act (TCJA) and introduces new policies aimed at simplifying compliance and incentivizing domestic growth.
Here, we break down the key provisions that impact business owners and what you should be thinking about as you plan your tax strategy. While this blog focuses on how the Act affects businesses, we’ve also broken down the key changes for individuals in a separate post:
See how the Act Affects individual taxpayers.
Extension of TCJA Provisions
The Act extends several popular provisions from the TCJA.
Here’s what continues:
Lower corporate tax rates
100% bonus depreciation for qualifying equipment and property purchases
If your business relies on buying equipment or improving facilities, this is a big win. You can still write off major purchases immediately instead of depreciating them over time.
R&D Expenses Can Be Deducted Upfront Again
For many innovative businesses, this is one of the biggest wins.
The Act allows businesses to once again fully deduct research and development (R&D) expenses in the year they occur, rather than spreading them over several years.
This means:
Better cash flow
Simpler accounting
Stronger incentive to innovate
If your company develops products, software, systems, or technical processes—this is for you.
Revisions to International Taxation
The Act makes several changes to foreign income taxation, aiming to simplify a notoriously complex area of the U.S. tax code. While the details are still being clarified through IRS guidance, the spirit of the changes is clear: to make it easier and more attractive for U.S. companies to bring foreign earnings back to the U.S. and reinvest those profits domestically.
Multinational businesses will want to review their international structures, transfer pricing arrangements, and foreign tax credit strategies in light of these updates. The potential for simplification could bring compliance relief, but companies with global operations should consult closely with international tax advisors.
Termination of Clean Energy Tax Incentives
Perhaps one of the more controversial provisions for some sectors, the Act terminates a broad range of clean energy tax incentives. Businesses that previously relied on energy-efficiency credits, solar investment tax credits, or similar renewable energy programs will need to reassess their project timelines, financial forecasts, and tax and financial strategies to account for these changes.
For companies already in the middle of sustainability initiatives, this may increase costs or delay ROI.
What You Should Do Next
With tax legislation this expansive, it’s not just a matter of checking boxes—it’s about strategic positioning. Now is the time to:
Revisit your equipment purchase strategy under bonus depreciation
Evaluate foreign income structures if you do business internationally
Rethink sustainability initiatives if you relied on energy credits
Evaluate R&D planning for 2025 and beyond
Bottom Line
Business owners should consult with their tax advisor to interpret how the Act affects their operations and financial planning. While some will see a direct benefit, others may need to pivot—especially those in renewable energy or with complex international ties.
At Aldridge Borden, we’re actively working with clients to review their structures, reassess their strategies, and take full advantage of the provisions that support growth. These are the moments where smart planning pays off—and we’re here to help you do it right.