Ruhani Health Care
The One Big Beautiful Bill Act (“OBBBA” or simply the Big Beautiful Bill), which came into effect in July 2025, stands out as the first major comprehensive law introduced by the Trump administration. As a sweeping tax reform, OBBBA is considered one of the most significant fiscal policy shifts in recent U.S. history. Fundamentally, it is a tax-cut law designed to support both large and small businesses, enabling them to make greater contributions to the economy.
The Act creates important opportunities for small businesses, startups and investors, while also reshaping the balance in certain sectors such as energy and defense.
Tax Advantages of OBBBA
One of the most notable aspects of OBBBA is its tax benefits. The previously temporary Qualified Business Income (QBI) deduction has now been made permanent. Under this rule, “pass-through entities” such as LLCs, partnerships and sole proprietorships can continue to claim a 20% deduction on profits. For family-owned businesses and self-employed professionals, this represents a significant financial relief.
Another key measure is the continuation of 100% bonus depreciation. Normally, businesses had to spread the cost of machinery, equipment or real estate investments over several years, which strained cash flow and created an early tax burden. With the new law, these investments can now be fully expensed in the first year. This particularly strengthens cash flow in capital-intensive sectors such as manufacturing, logistics and construction.
In addition, a tax deduction has been introduced on auto loan interest for individuals. On the business side, the changes in bonus depreciation and interest deduction limits are expected to reduce financing costs in the transportation and logistics sectors, opening the door for further growth and investment.
Small Businesses and Startups
OBBBA also includes significant provisions for small businesses and innovative ventures. Most importantly, R&D expenses can now be deducted immediately. Previously, such costs had to be amortized over several years. This change provides an immediate cash flow advantage, especially for startups in technology, software and pharmaceuticals.
To strengthen employee retention, the Act introduces “Trump Accounts”, tax-deferred funds for children, which employers can use as indirect incentives for their employees. This is particularly attractive for fast-growing startups.
Another employee-friendly measure is the temporary tax exemption on overtime pay and tips until 2028. Tips are exempt up to $25,000, while overtime pay is exempt up to $12,500 for single employees and $25,000 for married employees. In addition, the child tax credit has been increased. Collectively, these measures reduce labor costs indirectly, particularly in the restaurant, tourism and retail industries.
The Effects of OBBBA on Real Estate and Investment
OBBBA also incentivizes real estate and investment activity. New depreciation benefits in commercial real estate make office, factory and warehouse projects more appealing. Because investors can expense these projects faster, the return on investment cycle shortens.
Alongside bonus depreciation and other measures, leasing and rental investments also become more attractive. This is expected to facilitate expansion for franchise chains and retail businesses, fueling new store openings and franchise growth.
Sectoral Impacts of OBBBA
The law produces different outcomes across sectors. In the energy industry, incentives for renewable energy were reduced, while fossil fuel companies received greater advantages. As a result, the balance of power in the energy market shifted in favor of fossil fuel producers.
Defense and security investments also benefited from OBBBA. Increases in the defense budget created new opportunities for contractors, while additional funding for border security boosted demand in the security technology and construction sectors.
Overall, the “Big Beautiful Bill” delivers strong support to the business world, primarily through tax benefits and improved cash flow. Small businesses, startups and investors gain short-term liquidity advantages, while certain industries-such as energy-experience more mixed effects.
That said, because the law disproportionately benefits higher taxpayers, its long-term impact on the federal budget and public finance continues to raise debate.
For businesses to fully leverage these opportunities, legal and financial advisory support is essential. At Onal Gallant, we are pleased to offer legal guidance to help your business maximize the tax and incentive benefits available under OBBBA.