Understanding The One Big Beautiful Bill Act

How CEO and CFO Collaboration Can Benefit Your Business

The One Big Beautiful Bill Act (OBBB) has officially passed and for the last few weeks much of the public discourse has centered on household relief, however the real story for businesses lies in its strategic financial implications.  Let’s shed some light on the new OBBB and how this legislation will affect your company’s bottom line, operational planning, and long-term growth strategy.  Here are many items to consider when strategizing with your financial partners and strategic business advisors.

Tax Certainty Returns
One of the most immediate and impactful outcomes is the stabilization of the corporate tax rate at 21%. The previously anticipated increase in 2026 has been shelved, giving businesses a clearer runway for multi-year planning. This level of predictability allows companies to forecast with greater confidence, avoid defensive tax positioning, and make more confident decisions around capital allocation, cash flow and expansion.

100% Bonus Depreciation Is Back
One of the standout changes in the new legislation is the permanent extension of bonus depreciation rules. What does that mean in plain terms? Companies can now write off big-ticket purchases, such as delivery trucks, factory equipment, or office technology, much faster than before. This will help boost cash flow, and it helps businesses get quicker returns on their investments.  The old phase-down schedule for depreciation is gone. Starting January 19, 2025, businesses can take advantage of 100% bonus depreciation for qualifying assets placed in service after that date. So, if you’re planning major capital purchases, it’s worth timing them carefully to make the most of this opportunity.

R&D Write-Offs
An impactful move in the OBBB bill is the revival of Research and Development (R&D) tax treatment and restoration of immediate expensing for domestic R&D costs. Instead of spreading deductions over several years through amortization, businesses can now fully deduct qualifying R&D expenses in the same year they’re incurred. That’s a big win for innovation-driven companies looking to free up cash and reinvest quickly. Plus, it opens the door to accelerate any leftover Section 174 deductions, giving taxpayers more control over how they sync their tax strategy with their growth goals.

Expansion in Opportunity Zones
Revived Opportunity Zone incentives offer tax breaks and a strategic gateway for businesses to expand into underserved markets, also known as Opportunity Zones. Businesses investing in these zones can defer or even eliminate capital gains taxes.  The big potential lies in the ability for companies to scale responsibly, tap into new customer bases, and fuel community development. Picture a logistics company building a distribution center in an Opportunity Zone. It cuts tax costs while creating jobs where they’re needed most.

Tax Breaks for Tips and Overtime
The OBBB also introduces expanded deductions that open up new avenues for cash flow optimization. Deductions for tip income, overtime pay, and auto loan interest may seem minor on the surface, but they represent big opportunities to refine payroll strategy and fleet management.  Workers in industries where tipping is common, like restaurants, salons, or hospitality, may now deduct up to $25,000 in qualified tips from their federal taxable income. Companies will have to make plans to update their reporting systems to ensure compliance and maximize these benefits.

Digital Payment Changes
If you are a “solopreneur”, you’re used to 1099s. While you’re always required to pay taxes on any income, the reporting thresholds are changing. Digital platforms like Venmo and PayPal have updated their reporting thresholds for business transactions, which could affect how freelancers and gig workers track income and handle 1099 forms. For entrepreneurs who may be juggling a W-2 job as well as a side business with  payments through digital platforms, the minimum threshold is now increased to $20,000 or 200 transactions.

Impacts to Health System
While the OBBB brings some exciting tax breaks and business perks, it also adds a big change, especially when it comes to executive pay and long-term benefits. One of the bigger changes is around Medicare and Medicaid eligibility. The income brackets and asset limits have been updated, which could affect how some employees qualify for public health programs. For companies, this means you might need to rethink how you handle retiree benefits and supplemental coverage, especially for senior leadership. And for high earners, there are new surtaxes and phaseouts that could impact things like deferred comp, stock options, and retirement plans.

A Financial Roadmap for OBBB
If you’re considering revisiting your growth roadmap, restructuring compensation packages, or exploring new ways to reinvest in your company, let’s schedule time to align your financial strategy with the new legislative landscape. B2B CFO ^® Partners will continue to monitor developments in the OBBB so you can lead with confidence and preparation.

If you have questions, want to strategize and see the impacts to your company’s bottom line, schedule a consult with me today. Send an email to PeggyHead@b2bcfo.com.