Originally published What the “One Big Beautiful Bill” Means for America’s Small Businesses on by https://www.hstoday.us/industry/what-the-one-big-beautiful-bill-means-for-americas-small-businesses/?utm_source=rss&utm_medium=rss&utm_campaign=what-the-one-big-beautiful-bill-means-for-americas-small-businesses at Homeland Security
Small businesses are poised to benefit significantly from provisions in the recently passed legislative package championed by President Trump, dubbed the “One Big Beautiful Bill.” While much of the media attention has focused on immigration, border security, and national defense, the bill quietly introduces sweeping and permanent tax changes designed to ease financial burdens and stimulate growth for the backbone of the U.S. economy: small businesses.
Among the most impactful changes is the increase and permanence of the Small Business Tax Deduction, formally known as the Section 199A deduction. Previously set to expire at the end of the year, the deduction has been increased from 20% to 23% and locked in permanently. In 2021, nearly 26 million small businesses utilized this deduction, making its expansion a monumental gain. This deduction applies to paWhat the “One Big Beautiful Bill” Means for America’s Small Businessesss-through entities such as sole proprietorships, partnerships, and S-corporations, allowing them to deduct a significant portion of qualified business income—substantially lowering taxable income.
The bill also doubles the Section 179 expensing cap from $1.25 million to $2.5 million, enabling small businesses to write off the full cost of qualifying equipment purchases in the first year. This adjustment is a powerful incentive for reinvestment, especially in capital-intensive sectors such as manufacturing, logistics, and agriculture.
Additionally, the bill makes permanent the individual income tax rate cuts enacted in 2017—a crucial move considering that nearly 90% of small businesses are structured as pass-throughs and pay income taxes at individual rates. By preventing the scheduled rate increases, the legislation ensures continued tax relief for millions of entrepreneurs and sole proprietors.
Lastly, the bill raises and solidifies the estate tax exemption to $15 million for individuals and $30 million for joint filers, offering long-term security for family-owned businesses. This move helps protect generational wealth transfer, ensuring that small business assets can be passed down without triggering prohibitive tax penalties.
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Originally published What the “One Big Beautiful Bill” Means for America’s Small Businesses on by https://www.hstoday.us/industry/what-the-one-big-beautiful-bill-means-for-americas-small-businesses/?utm_source=rss&utm_medium=rss&utm_campaign=what-the-one-big-beautiful-bill-means-for-americas-small-businesses at Homeland Security
Originally published Homeland Security
