Understanding the One Big Beautiful Bill Act (OBBBA)

 The One Big Beautiful Bill Act (OBBBA) is the most sweeping piece of tax legislation in recent years. Signed into law on July 4, 2025, it introduces permanent and temporary tax code changes that will directly impact businesses of all sizes. At BELNAVIS, LLC, we are committed to helping business owners not only stay compliant but also maximize the planning opportunities this law provides. 

 This legislation is not just a minor update — it rewrites significant portions of the tax code. Many provisions are retroactive, permanent, or time-limited, which means timing and strategy are critical. Business owners who understand and act on these changes can unlock powerful tax savings, while those who wait risk missing out. 

• Businesses in tipped industries (restaurants, salons, hospitality, etc.) can now help employees deduct up to $25,000 of tip income annually.
• Tips must still be reported and subject to payroll/self-employment tax.
• Employers must update payroll systems to track and report tips separately.
• Not available for Specified Service Trades or Businesses (SSTBs) such as law, accounting, health, consulting, etc.

•  Employees in non-exempt positions under the Fair Labor Standards Act (FLSA) can deduct up to $12,500 of overtime pay per year ($25,000 for joint filers).
• Employers must report qualifying overtime separately on Form W-2.
• Exempt employees and Highly Compensated Employees (HCEs) are not eligible.

•  Effective for property placed in service on or after January 19, 2025.
• Applies to new and used qualified property with a recovery period of 20 years or less.
• Includes equipment, technology, furniture, certain vehicles, and qualified improvement property.
• A powerful tool for businesses planning major capital investments. 

•  Deduction limit increased to $2.5M with a phaseout beginning at $4M.
• Includes roofs, HVAC, fire protection, security systems, and qualified improvement property (QIP).
• Section 179 is elective and can be applied selectively across assets, unlike bonus depreciation which is automatic unless opted out.

•  Small businesses (under $31M in gross receipts) can retroactively expense R&D costs back to 2022.
• Options include amending prior returns or accelerating amortization into 2025–2026.
• Larger businesses can accelerate unamortized amounts over two years (2025–2026).
• Opportunity to claim immediate refunds or reduce current tax liability.

•  Student Loan Repayment Benefit: Employers may contribute up to $5,250 annually toward employee student loans (now & permanent starting 2026).
• Paid Family & Medical Leave Credit: Permanent tax credit up to 25% of wages or premiums paid.
• Employer Childcare Credit: 40%–50% credit on expenses up to $500K–$600K for on-site facilities, referrals, or childcare partnerships.
• Employer-Provided Meals: New restrictions after 2025 on deductibility of meals provided on employer premises.

•  Pass-through businesses can continue claiming the 20% deduction. 
• Expanded income thresholds make it easier to qualify. 
• Great opportunity to revisit entity structure and income planning.

•  1099-K threshold restored to $20,000 and 200 transactions starting in 2025.
• 1099-NEC and 1099-MISC thresholds increased to $2,000 in 2026, indexed for inflation thereafter.

•  Commercial EV and sustainable aviation fuel credits end after September 30, 2025.
• Energy-efficient commercial building deductions and EV charging credits end by June 30, 2026.
• Solar and wind credits phase out after December 31, 2027.

•  New 1% floor on corporate charitable contributions starting in 2026.
• Corporate Alternative Minimum Tax (AMT) adjusted to account for certain intangible costs.

 OBBBA creates both compliance obligations and planning opportunities. 

At BELNAVIS, we recommend:

• Industry Focused Planning: If you are in hospitality, salons, or tipped industries, immediate payroll and recordkeeping updates are essential to maximize the new tip and overtime deductions.
• Capitalize on Asset Purchases: With permanent 100% bonus depreciation and expanded Sec. 179, 2025 is the time to invest in equipment, vehicles, and improvements.
• R&D Claims: File retroactive claims for unamortized research costs. This could generate refunds for tax years 2022–2024.
• Entity Optimization: With QBI made permanent and thresholds expanded, pass-through businesses should reassess entity structure to maximize savings.
• Leverage Employer Credits in 2026: Build employee benefits packages that attract talent and create tax savings through childcare, student loan, and family leave credits.

Navigating OBBBA requires both technical tax expertise and strategic planning. 

We offer:

• OBBBA Business Check-Up Sessions – tailored analysis of how the law impacts your business.
• R&D Retroactive Claim Reviews – uncover refunds from prior years.
• CFO Advisory Services – integrate OBBBA tax strategies into your financial planning.
• Payroll & Compliance Support – ensure tip and overtime deductions are correctly tracked and reported.
• Entity & Tax Structure Planning – optimize your business setup to leverage QBI and other deductions.