On July 4, Congress passed the One Big Beautiful Bill (OBBB) — a sweeping piece of legislation that impacts how businesses operate, how individuals plan, and how federal programs are funded. While the headlines focused on the politics, this bill brings permanent changes to the tax code, shifts timelines on popular credits, and tightens eligibility rules in ways that matter for business owners.

If you run a small business — or are a self-employed individual — this bill directly affects your planning for 2025 and beyond.

Here’s a breakdown of what’s changing, what’s ending, and what you should be doing now.

Tax Relief Locked In: Key Provisions from the 2017 Tax Cuts Are Now Permanent

Many popular elements of the 2017 Tax Cuts and Jobs Act (TCJA) were originally set to expire. This bill makes several of them permanent, offering some stability for business owners.

The Section 199A pass-through deduction (up to 20% of qualified business income) is now permanent for sole proprietors, LLCs, partnerships, and S-corps.
Bonus depreciation remains available for certain capital purchases, and this bill maintains its availability — potentially pausing or adjusting the phase-down schedule introduced under the 2017 TCJA.
R&D tax credits continue, allowing businesses that invest in innovation, software, or new systems to claim tax-saving benefits.
Lower corporate rates and AMT relief are locked in, giving businesses longer-term clarity for forecasting and investment planning.

Energy and Clean Tech Credits: A Race Against the Clock

The bill dramatically changes the landscape of energy-related tax credits. While some are extended, most are set to expire in the next two years — with new limitations and conditions.

Credits Ending by Late 2025 or Mid-2026:

New EV credit (30D): Ends after September 30, 2025
Used EV credit (25E) and Commercial clean vehicle credit (45W): Also end September 30, 2025
Energy efficient home improvement credit (25C): Ends December 31, 2025
Residential clean energy credit (25D): Ends December 31, 2025
New energy-efficient home credit (45L): Ends June 30, 2026

Credits Modified but Extended:

Clean electricity production (45Y) and investment (48E) credits: Available through 2027, but only for projects that begin construction within a year of the bill’s passage
Advanced manufacturing production credit (45X): Phases out between 2026–2029
Clean fuel production credit (45Z): Extended through 2029, but subject to new restrictions on foreign feedstocks starting after 2025

Niche Credits Worth Noting:

Clean hydrogen production (45V): Ends 2027
Carbon capture (45Q): Credit amount updated
Nuclear energy production (45U): New restrictions if imported fuel is used after December 31, 2027

Key Eligibility Change: Foreign Entity Restrictions

Starting in 2026, businesses receiving material assistance from prohibited foreign entities may lose eligibility for many energy and manufacturing-related credits — even if the foreign entity is just part of the supply chain.

What to review:

Your ownership and investor structure
Where your components and raw materials are sourced
Any future partnerships or joint ventures that could trigger disqualification

Clean Energy Depreciation Rule Change

The bill also removes the special recovery period for clean energy property (under Section 48), which affects how fast businesses can depreciate those investments. If you’re installing solar, wind, or other qualifying systems, this change could impact your tax write-off timeline.

Healthcare: Subtle but Significant Shifts

While not the core of the bill, several healthcare provisions were included — some of which may affect employer-sponsored plans and family coverage:

Adjustments to federal healthcare funding formulas
Renewed support for pandemic-era flexibilities
Potential downstream effects on insurance cost and availability

Businesses that offer health insurance or reimburse for individual plans should keep an eye on implementation rules in the coming months.

Food Assistance Programs: What’s Changing in SNAP and Nutrition Support

While the bill’s spotlight is on tax and energy provisions, it also introduces significant changes to nutrition programs like SNAP (Supplemental Nutrition Assistance Program) — and not all of them are expansions.

Instead of increasing benefits, the bill tightens eligibility requirements and reduces long-term federal funding. Key changes include:

Expanded work requirements for adult SNAP recipients up to age 55, which could disqualify some part-time workers and limit access for vulnerable populations.
Increased cost-sharing with states, meaning states will bear more of the financial responsibility for administering benefits.
Projected cuts of nearly $300 billion to federal food assistance over the next decade, which could impact how much support low-income households receive.
Limited support for fresh food incentives and online access pilots, but far less than originally proposed.

For small grocers, restaurants, and food suppliers that serve low-income areas, this may reduce benefit-driven consumer spending — especially in communities where SNAP dollars drive consistent demand. However, the bill may still fund targeted programs, such as school meal extensions in high-poverty districts, that could present localized partnership or procurement opportunities.

Bottom line: While the bill restructures parts of the food assistance system, small businesses should prepare for a potential drop in SNAP-related purchases and monitor for regional pilot programs or grants that could offset broader cuts.

Defense, Security, and Broader Federal Priorities

The bill includes substantial funding for border security and defense, which was a key condition for its passage. While this doesn’t directly change your taxes, it could have indirect implications for:

Labor markets (especially for industries relying on immigration)
Federal contractor opportunities
Supply chain dynamics across industries like logistics, aerospace, and construction

What Business Owners Should Be Asking Now

Are we maximizing the permanent Section 199A deduction?
Do we need to make equipment or vehicle purchases before bonus depreciation potentially phases down?
Can we still qualify for any clean energy credits — and are we within construction windows?
Do we have any international ownership or supplier relationships that could become a credit risk?
Should we update our tax forecast or entity structure now that some provisions are permanent?
Are we taking advantage of new grant or funding opportunities from food, energy, or healthcare changes?

Final Takeaway: You’ve Got a Window. Use It.

The One Big Beautiful Bill gives business owners a clearer runway on some things — and a countdown clock on others. What you do in the next 12 to 18 months could have a significant impact on your tax liability, investment timing, and operational strategy.

Even if your business doesn’t deal in energy or manufacturing, you may still benefit from R&D credits, depreciation planning, or the right business structure. And if you’re a household taxpayer, nonprofit, or self-employed worker, there are real changes to factor into your next return.

Now is the time to review your tax position, project timelines, and eligibility — before the deadlines hit.

If you’re not sure where to start, we’re here to walk you through it.

The Article “The One, Big, Beautiful Bill: What This New Law Means for Your Business, Your Taxes, and What Comes Next” was originally posted here.

The One, Big, Beautiful Bill: What This New Law Means for Your Business, Your Taxes, and What Comes Next