So, the One Big Beautiful Bill Act (yep, that’s the real name) was just signed into law in July 2025—and if you run your own business, there are a lot of changes you’ll want to know about. Taxes, deductions, retirement accounts—you name it. The bill touches just about everything.
Below, we’ve broken down the 10 most important changes for business owners like you, plus how they might affect your money, financial strategy planning, and sanity.
1.
The QBI Deduction Just Got a Bump (From 20% to 23%)
Starting with the 2026 tax year, the Qualified Business Income (QBI) deduction gets a little sweeter—going from 20% to 23%. If you’re self-employed or running a pass-through business (like an LLC or S-corp), this means you’ll owe less tax on those earnings compared to your friends with regular W2 jobs. Why? Because they don’t get this deduction.
Quick Tip: If you’re still doing a mix of W2 and 1099 work, it might be time to take a hard look at your setup. Maximizing 1099 income could now give you a tax edge.
2.
Huge Deductions for Big Purchases Are Back
You can now write off 100% of the cost of qualified business equipment (vehicles, software, renovations—you name it) placed in service between 2025 and 2029. And the Section 179 cap is up to $1.5 million.
We have a client who was on the fence about buying a $90k truck for their landscaping business—this new rule pushed them to pull the trigger. Their accountant said the full write-off saved them over $25k in taxes.
Plan Ahead: If you’ve been holding off on big upgrades, 2025 might be the year to invest.
3.
New Retirement Options + The Oddly-Named MAGA Accounts
If you’re a business owner, you already have access to better retirement tools than the average employee—like SEP IRAs or solo 401(k)s. The bill keeps those intact, but also adds something new: MAGA accounts (no politics here—it stands for “Money Accounts for Growth and Advancement”).
These allow employers to contribute up to $5,000 per eligible child of an employee. Not deductible, but exempt from FICA taxes. Great if you’re trying to beef up employee benefits.
Use It Smart: If you run a family business or want to attract young talent with kids, this could be a creative perk.
4.
SALT Cap Still Exists—but There’s a Loophole for Businesses
Remember the $10,000 limit on deducting state and local taxes? Still there. But if you own a pass-through business (LLC, S-corp, etc.), you can use the Pass-Through Entity Tax (PTET) workaround.
Instead of paying those taxes personally, your business pays them—and gets a federal deduction for it. W2 folks can’t do this. It’s a legit tax break just for business owners.
Heads-Up: If you’re in law, consulting, or accounting (aka an SSTB), you might not qualify anymore—new restrictions apply.
5.
HSA Rules Just Got Friendlier (Especially for Older Workers)
Here’s a fun surprise: if you’re on Medicare Part A but still working, you can now contribute to an HSA—as long as you also have a high-deductible health plan.
Also, if your income is under $75k ($150k for families), you can contribute even more: $4,300 extra for individuals, $8,550 for families.
Pro Tip: If you’re self-employed and eligible, this is one of the cleanest tax shelters around—especially when your business can deduct contributions.
6.
Student Loan Changes Are Big—and a Little Complicated
The government is phasing out current income-driven repayment plans and introducing two new ones. The biggest changes? Payments are tied more directly to income, and forgiveness kicks in after 30 years. Economic hardship deferments are basically gone.
Also: Employers can now help employees repay loans—up to $5,250 per year, tax-free.
Smart Move: Consider adding this perk to your business if you’re hiring younger talent drowning in student debt. It’s deductible and appreciated.
7.
ABLE (ABLE-to-work) Accounts Just Got More Flexible
If you or someone you employ has a qualifying disability, the ABLE-to-Work provision now lets more money flow into these accounts. Up to $33,000 in some cases.
And if your business contributes up to $18,000 as part of a fringe benefit plan? That’s deductible and FICA-free.
Family Business Hack: If your child or spouse qualifies, this could be a way to build long-term savings with tax advantages.
8.
529 Plans Are Getting an Upgrade
Starting in 2026, you can use 529 funds for way more things—like homeschooling and extra credentials beyond college. Plus, the K–12 tuition limit is now $20k/year.
Employers can chip in to employee 529s, too, with some states offering tax credits for doing so (Colorado and Illinois, for example).
Bonus: Unused 529 funds can be rolled into an ABLE account—big win for families with special needs children.
9.
Bigger Tax Credit for Childcare
The Child and Dependent Care Tax Credit (CDCTC) is now more generous: up to 50% of expenses, with limits of $10,000 (1 child) or $20,000 (2+).
Also, business owners can offer Dependent Care Assistance Programs (DCAPs) through the business. These are deductible and FICA-exempt—what’s not to like?
10.
R&D Costs? You Can Deduct Them Again (Finally)
If you’ve done research and development in your business, you can now expense those costs immediately—starting retroactively from 2022.
Next Step: Talk to your CPA about amending old returns and updating your accounting to claim this. It’s real money you might’ve left on the table.
TL;DR – What Should You Actually Do?
Here’s your short action list:
- Call your tax pro or Orlando CPA—there’s a lot to unpack here.
- Schedule big purchases smartly to leverage bonus depreciation.
- Review payroll + benefits—student loan help, MAGA accounts, HSAs, 529s, etc.
- Amend returns if needed (especially for R&D or depreciation updates).
- Stay proactive—there are too many opportunities here to miss.
Final Thoughts
This new bill is a doozy—but if you’re self-employed or running a business, it could be a huge win for your overall financial strategy. The key is knowing how to play the game. Don’t wait until next tax season—start planning now. Contact someone who specializes in business CPA Services in Orlando or in your city of operation to see what you can do to plan for the changes.