By Jonathan Sluis, CPA – President, Intrust CPA

The One Big Beautiful Bill Act (OBBBA), passed in July 2025, includes tax changes designed to help both workers and business owners

No Federal Tax on Tips & Overtime
One of the most talked-about changes is the elimination of federal income tax on tips and overtime pay. This can make a big difference for industries like restaurants, hospitality, and services where tips are a major part of earnings. For business owners, this could simplify payroll conversations and make jobs more attractive to employees.

QBI Deduction Is Here to Stay
The bill makes the Qualified Business Income (QBI) deduction permanent, letting many small business owners deduct up to 20% of eligible income. It also expands the phase-in range for service-based businesses and adds a $400 minimum deduction for those earning at least $1,000 of QBI from an active business. Bottom line: this deduction continues to be a powerful tax-saving tool for entrepreneurs.

Buy Equipment? Deduct It Faster
If you purchase equipment, machinery, or technology, you can still deduct the cost right away thanks to expanded expensing rules and bonus depreciation. For startups, that means more cash stays in your pocket during critical growth phases.

The Bottom Line
These are just a few highlights. The bill also includes individual-focused benefits such as tuition credits for private school, permanent income tax rate adjustments, an increased refundable child tax credit, a new senior deduction, and the introduction of Trump Accounts for retirement savings.

The opportunities are exciting—but the rules are complex. Before you make any big decisions, talk to your accountant. A little planning now can save you a lot later.