Navigating the One Big Beautiful Bill Act: A Strategic Guide for Business Owners

What Is the OBBBA—and Why It Matters

Enacted on July 4, 2025, the One Big Beautiful Bill Act (OBBBA) delivers sweeping tax changes affecting individuals, businesses, estates, and energy sectors. While many provisions bring immediate benefits, others come with complexity and sunset dates. At Lucrum Legal Accounting, we believe in translating legislative shifts into smart, actionable strategies—so you can navigate change with confidence.

Key Provisions That Could Impact Your Bottom Line

1. Individual Tax Relief: Extended and Enhanced

• Permanent tax cuts bring long-term rate stability.

• A significantly higher standard deduction provides more breathing room.

• Expanded temporary credits include:

  • Deductions for tip and overtime income, up to $25,000 (through 2028)

  • Higher child tax credit ($2,200 per child) with inflation indexing

  • Elevated SALT deduction cap of $40,000 for select taxpayers, reverting to $10,000 after five years

• New deductions like auto loan interest relief create additional savings opportunities.

2. Business Benefits: Depreciation, R&D, and Pass-Throughs

• 100% Section 179 depreciation is now permanent, meaning immediate write-offs on qualifying assets.

• Full expensing of domestic R&D costs, plus flexibility for amortization and retroactive deductions.

• A permanent 20% pass-through deduction continues to support LLCs, S Corps, and partnerships.

• Additional incentives include an expanded tax credit for semiconductor production.

3. Estate Planning and High-Net-Worth Considerations

• Beginning in 2026, estate exemptions rise to $15 million for individuals and $30 million for couples, offering rare stability and planning clarity.

4. Energy and Employee Benefits: Watch the Sunset Meter

• Clean energy tax credits are being phased out, though certain projects may still qualify under specific conditions.

• Childcare and family leave benefits receive boosts:

  • Employer childcare credits up to 50% (with caps for small businesses)

  • Dependent care FSA limits raised to $7,500

  • Paid FMLA leave credit made permanent

What We Recommend: Smart, Actionable Steps

Action Item	Why It Matters
Review asset purchases & R&D budgets	Lock in full expensing and deduction benefits.
Update estate plans	Align with expanded exemptions before 2026.
Maximize temporary credits	Leverage tip/overtime deductions and SALT limits before they sunset.
Assess energy project timelines	Confirm eligibility for credits before deadlines.
Reevaluate pay structure & entity type	Ensure pass-through and R&D incentives are fully utilized.
Plan for flexibility	Adapt quickly to future legislative adjustments.

Why Lucrum Legal Accounting Is Your Ideal Guide

Our blend of tax expertise, strategic planning, and proactive communication ensures you're not just compliant—but positioned for growth. We’re here to:

• Decode complex legislation into clear, actionable steps

• Align savings with your financial vision and industry

• Adapt your strategy as the regulatory environment evolves

Let’s turn the One Big Beautiful Bill into something even more beautiful for your business.