What the New 'Big, Beautiful' Tax Bill Means for You and Your Business

How will the House GOP's new tax bill reshape the landscape for individuals and businesses? With billions at stake and complex provisions on the table, understanding its impact is essential for making informed financial decisions.

The Tax Picture Is Changing Again. Are You Prepared?

The House Ways and Means Committee’s latest tax proposal, referred to as "The One, Big, Beautiful Bill," isn’t just a political talking point; it’s a sweeping effort to extend or expand key elements of the 2017 Tax Cuts and Jobs Act (TCJA) and introduce a host of new provisions reflecting President Trump’s current campaign promises. Released in May 2025 and on a legislative fast track, this bill could fundamentally change the calculus for taxpayers and businesses nationwide.

Key Provisions That Demand Your Attention

For Businesses and Entrepreneurs

• Bonus Depreciation: The bill restores 100% expensing for newly placed-in-service manufacturing property through 2029, dramatically front-loading tax benefits for capital investments.

• Research & Experimentation (R&E) Expensing: Under the proposed legislation, domestic R&E expenses can be written off immediately until 2030, reversing an unpopular rule that required capitalization of domestic research and development costs with recovery over 5 years via amortization.  The proposed rule continues to call for capitalization of foreign R&E and recovery of those costs via amortization.

• Qualified Business Income Deduction: The 20% deduction (Section 199A) for pass-through businesses not only becomes permanent but expands to 22%, with revised deduction thresholds.

• Interest Deduction Rules: The draft bill provides for a return to a more generous EBITDA-based limit for computing deductible interest expense for tax years beginning after December 31, 2024 and before January 1, 2030. This could result in taxpayers’ burdened by large interest limitations in the past years to potentially claim larger interest deductions because of an “add back” for taxes, depreciation, and amortization.

• Manufacturing Real Estate Expensing: Manufacturers would be allowed to fully expense certain new nonresidential property used in production, incentivizing domestic growth, vs the current 39-year recovery period for these types of properties.

• Higher Revenue Limit for Tax Breaks for Small Manufacturers: Starting in 2026, more manufacturing businesses may qualify for valuable tax simplifications. A new provision raises the revenue threshold from about $31 million to approximately $100 million for manufacturers to be considered “small” for tax purposes.

For Individuals and Families

• Individual Tax Rates and Brackets: The bill would permanently lock in the lower rates and adjusted tax brackets established under the TCJA, providing extra relief for all but the highest earners (the 37% bracket). This stability could simplify tax planning for many households.

• Standard Deduction and SALT Cap: The higher standard deduction would remain, with no personal exemptions. Importantly, the cap on State and Local Tax (SALT) deductions would rise to $30,000 for couples, but phase out for those above $400,000 in income, creating a different calculus for high earners in high-tax states.

• Child Tax Credit: Expanded to $2,500 per child through 2028, then slated to revert to $2,000.

• Estate (Death) Tax: The exemption, doubled under the TCJA, would be made permanent.

• "No Tax on Tips" & Other New Breaks: Tipped and overtime income become tax-free; a new deduction for auto loan interest; and a $4,000 "senior bonus" for Social Security recipients, all headline additions.

• No Tax on Car Loan Interest: Would let many Americans deduct up to $10,000 per year in interest paid on car loans—something that hasn’t been allowed before. To qualify, your vehicle must be assembled in the U.S. and can include cars, trucks, SUVs, vans, motorcycles, RVs, and even ATVs. However, this tax break starts to phase out if your income is over $100,000 (or $200,000 for joint filers).

Revenue Raisers and Offsetting Provisions

• Remittance Tax: A new 5% tax hits money sent abroad, primarily impacting immigrant workers and their families.

• Nonprofit and Endowment Taxes: Higher costs for private foundations and large university endowments may constrain funding for nonprofit services.

• Caps on Corporate Executive Compensation: Tightens deduction limits on executive pay.

• Restrictions on Professional Sports Deductions: Limits tax breaks, aiming to curtail high-profile tax planning by major franchises.

Energy and Environmental Rollbacks

• Clean Energy Credit Repeal: Phases out or eliminates multiple clean energy tax credits, including those for electric vehicles and renewable production, beginning as soon as 2026. This marks a major shift away from recent federal support for green initiatives.

Fiscal and Political Stakes

• Deficit Impact: Joint Committee on Taxation estimates show the bill will increase the deficit by $3.7 trillion over a decade, igniting debate over long-term fiscal sustainability.

• Spending Offsets: Plans for $880 billion in spending cuts, mostly from Medicaid and safety-net programs, have drawn criticism regarding the impact on lower-income Americans.

• Debt Ceiling: Raises the federal borrowing cap by $4 trillion to avoid default, but this does little to address growing concerns over the $36 trillion national debt.

Major Points of Contention

• Who Really Benefits? While sold as a win for working families, small businesses, and farmers, critics argue the most significant gains will flow to high-income households and corporations, mirroring debates seen after the original TCJA.

• SALT Compromise: The increased SALT cap is poised to remain a battlefront, particularly for representatives from high-tax states.

• Clean Energy Backlash: The bill’s deep cuts to clean energy credits will affect both consumers and industries, notably in GOP districts that recently secured substantial green investments under the Inflation Reduction Act.

• Nonprofit Vulnerability: Higher taxes on nonprofits and endowments may pressure organizations aiding vulnerable populations, pushing some to reevaluate their operating models or scale down essential programs.

What Does This All Mean for You?

For Businesses:

• Manufacturers and Innovators: New expensing and R&E provisions offer substantial upfront deductions, improving cash flow and incentivizing investment.

• Pass-through Entities: An enhanced and permanent 199A deduction increases the after-tax return on business activities.

• Nonprofits and Higher Ed: Prepare for higher tax exposure; endowment and foundation income will face increased scrutiny and rates.

For Individuals:

• Do you itemize deductions? The new SALT cap and standard deduction policies could affect your annual liability, especially in high-tax states.

• Are you a parent or a senior? Expanded child and senior credits could deliver direct relief.

• Work in the service industry? Tax-free tips and overtime may meaningfully increase your take-home pay.

Industry Challenges Demand Clear Thinking

The sheer volume and complexity of these changes are magnified by uncertainty regarding the final legislative text. Not only must business owners and high-net-worth individuals contend with shifting incentives, but the bill’s intersection with tariff policies and potential inflationary effects means the ground will continue to move underfoot for months or even years.

There is also the risk of volatility as the energy sector adapts to withdrawn incentives, which could mean higher energy costs, not just for manufacturers, but for every business and household struggling to control operating expenses.

Expert Guidance Is Non-Negotiable

With the House voting scheduled by Memorial Day and Senate negotiations ongoing, time is short. Legislative text can and likely will shift. However, the broad structure and clear intention behind this bill are not likely to change soon. Those waiting for certainty before acting risk missing out on available opportunities (or falling prey to unforeseen liabilities).

What should you do now?

• Review your current year tax position with an eye to the proposed changes.

• Model out scenarios for your business, especially around depreciable investments, R&E budgeting, and potential impacts of the 199A expansion.

• Nonprofits and high-net-worth households should immediately analyze exposure to new taxes under the bill.

Don’t Wait for Washington to Decide Your Future

Tax complexity increases risk. But with the right expertise, it also unveils opportunity. Businesses and individuals prepared to act early and adapt quickly can lock in savings, sidestep pitfalls, and shape their strategies to thrive under the new regime.

Reach out to our tax experts today to understand how you can prepare for these changes and secure a stronger financial future.

Whether you’re an individual, a business leader, or a nonprofit executive, clarity and agility will define your success as Washington recalibrates the American tax landscape once again.