The One Big Beautiful Bill is now law, and it brings significant changes for business owners of all sizes. Here’s what you need to know.

For U.S. Businesses

Several major provisions affect how businesses can invest, deduct, and plan going forward:

  • Immediate deductions for R&D and equipment — businesses can now fully deduct the cost of U.S.-based research and development and short-term equipment purchases in the year they occur
  • 100% write-offs for buildings (2025–2029) — qualifying buildings with construction starting in this window and completed by 2031 can be fully expensed
  • Permanent 20% pass-through deduction — if you own an LLC or S-corp, the qualified business income deduction is now permanent, with added benefits for smaller businesses
  • Reduced deductibility for corporate charitable donations — corporations now only receive a tax break on donations exceeding 1% of income
  • Energy credit changes — some clean electricity credits are being eliminated, while clean fuel credits continue through 2030; new restrictions apply if foreign entities are involved in your project

Other Business Changes to Know

  • Interest deductions on business loans will be more limited going forward
  • Certain oil and gas drilling costs must now be reported differently
  • Additional industries — including hydrogen, nuclear, and geothermal — now qualify for select clean energy credits

For International Businesses

The bill also renames and restructures key international tax provisions:

  • GILTI is now called Net CFC Tested Income, with a top rate of 12.6%–14%
  • FDII becomes Foreign-Derived Deduction Eligible Income (FDDEI), taxed at 14%
  • The BEAT tax, which discourages tax avoidance through foreign payments, rises to 10.5%

The Bottom Line

The bill offers meaningful savings for U.S.-based investment, adds new guardrails around energy and foreign activity, and gives business owners more planning clarity going forward. Have questions about how these changes affect your business? Contact us at 708-665-6663 or marketing@4wealthfg.com. Or, visit 4wealthadvisors.com/get-in-touch to fill out our contact form.