July 4th, 2025 by WCBC Radio

Congress made the 20% Small Business Deduction permanent for small business owners by including it in the One Big Beautiful Bill Act. The bill is now on its way to the president for his signature. This is one of the most pro-small business pieces of legislation in recent history and creates certainty in the tax code for small business owners. Not only does the bill prevent a tax hike on over 33 million small business owners, but it also provides a tax cut for most small business owners.

Other major wins for small businesses in the OBBB Act include:

• Increases Section 179, Small Business Expensing Cap from $1.25 million to $2.5 million. Small businesses can now fully expense business equipment purchases in the first year.

• Makes the 2017 marginal rate cuts permanent. Without this provision, five out of seven marginal (individual) income tax rates would rise at the end of the year. Nine out of 10 small businesses are organized as pass-through businesses and pay regular income tax rates rather than the C-corporation rate.

• Increases and makes permanent the Small Business Estate Tax Exemption. The new exemption thresholds will be set at $15 million for individual filers and $30 million for joint filers.