How To Prepare Your Business For The One Big Beautiful Bill Act

July 17, 2025

The One Big Beautiful Bill Act (OB3), which includes changes to federal tax law, spending, and the debt ceiling, was signed into law on July 4, 2025. The size and complexity of the OB3’s changes to tax law and government incentive spending can have substantial impacts to the operating decisions of businesses. Understanding the most significant sections of the law can ensure your business is properly performing its financial analyses, allowing you to best allocate its resources in the most effective manner.

Investing in Property and Equipment

The OB3 has a number of impacts to investing in property and equipment that must be considered. Most significantly, companies have the option to expense 100% of the cost qualifying assets acquired after January 19, 2025 in the year they are placed in to service, as opposed to depreciating the assets over a defined life. This benefit, commonly referred to as “100% bonus depreciation” can incentivize businesses to invest in property more quickly than would otherwise be the case due to improved after-tax cash flow. Additionally, as the deduction does not apply to leased property, 100% bonus depreciation should be factored into any “buy vs. lease” analyses.

Notably, credits currently available for businesses that purchase plug-in hybrid and fully electric vehicles will be removed for any vehicles acquired after September 30, 2025. Businesses with a need for these vehicles may want to adjust their capital spending to prioritize these purchases. Future cost analyses should be appropriately updated to remove the impact of these credits.

Research and Development Costs

Beginning in 2022, businesses were required to deduct the cost of research and development (R&D) equally over 5 years, for U.S. costs, and over a 15-year period for foreign R&D. The OB3 has restored the option to immediately deduct U.S. R&D costs that have occurred after December 31, 2024, with further options to recognize the benefits over the life of the research (minimum 5 years) or 10 years.

Businesses should consider the impacts the law will have on their cash flow forecasting and investment analysis:

• The immediate deduction of domestic R&D costs should improve near term liquidity as a result of lower tax burdens in the year R&D expenditures occur. Higher liquidity associated with the expenditures may permit more aggressive R&D spending. 

• The increased benefits of domestic R&D spending over foreign spending should be considered when determining how current resources should be allocated. While tax implications should not be the sole factor in determining where R&D spending should occur, the tax benefits provided to domestic R&D spending should be properly included in any cost analysis.

De Minimis Imports Exemption

The de minimis exemption for imports is a customs rule that allows shipments valued at no more than $800 to be imported without tariff duties and taxes, with exceptions for China and Hong Kong beginning in May 2025. The OB3 ends the exemption for all other countries beginning July 1, 2027. Businesses with supply chains currently taking advantage of the exemption should model this additional cost into their forecasting.

Impact to Your Business

Due to the size and depth of the OB3, which runs 887 pages long, the law is still in the process of being interpreted by experts. The above points, which are based on the current understanding of the OB3 as of the date of this article, are just a few of the ways your business may be impacted. Stradiot Consulting & Advisory can help your business assess the financial and operating impacts of the new law, ensuring you have the information needed to effectively make decisions and drive your business forward.

This article is for informational purposes only and should not be relied upon as financial, investment, tax, or business advice. If you would like personalized guidance and support, please contact us.