The One Big Beautiful Bill Act (OBBBA) brings sweeping changes to business taxation for 2025 and beyond, with new tax rates, deduction rules, and compliance opportunities. Explore how the OBBBA impacts C corporations, partnerships, and small businesses—and how AI tax research and agentic AI tax tools can help you stay ahead. Ready to future-proof your business tax planning? Discover what you need to know and why it pays to upgrade your tax tech.
OBBBA Business Tax: The Key Changes at a Glance
The OBBBA, one of the most comprehensive tax reforms in recent years, introduces substantial updates for business taxpayers. Whether you’re a corporation, S corp, partnership, or sole proprietor, these provisions will shape your tax liabilities and planning strategies for years to come.
Highlights from the OBBBA affecting businesses:
1. Corporate Tax Rates and Structure
- Flat Corporate Rate: The corporate tax rate remains at a flat 21%, as made permanent by the OBBBA for years after 2025. This provides stability for corporate tax planning and forecasts.
- Minimum Tax on Large Corporations: The OBBBA imposes a minimum tax based on adjusted financial statement income for certain large corporations, targeting book income manipulation and ensuring large profitable companies pay at least a baseline tax.
2. Pass-Through Entities: Section 199A QBI Deduction
- QBI Deduction Permanent: The 20% Qualified Business Income (QBI) deduction for eligible pass-through entities (S corporations, partnerships, and sole proprietors) is made permanent.
- Enhanced Thresholds: The OBBBA increases income thresholds and clarifies aggregation rules for the QBI deduction, benefiting many professional service firms and small businesses.
3. Expensing and Depreciation
- Section 179 Expensing: Section 179 immediate expensing limits are increased—businesses can now expense up to $2.5 million in qualifying property purchases, with phase-out beginning at $5 million, indexed for inflation.
- Bonus Depreciation Extended: 100% bonus depreciation for qualifying property is extended through 2028, allowing businesses to fully deduct most capital investments in the year placed in service.
4. Business Credits and Deductions
- R&D Credit Expanded: The OBBBA expands eligibility and increases the cap for start-up businesses to use the R&D tax credit against payroll tax liability, encouraging innovation and new business formation.
- Charitable Deduction Limits: New higher limits for charitable contributions by corporations apply, with an increased AGI cap for both cash and non-cash gifts.
5. Other Provisions
- Net Operating Losses (NOLs): Rules around NOL carryforwards are further clarified, and the OBBBA allows for greater flexibility in using losses to offset future income.
- International Tax Changes: Provisions impacting global intangible low-taxed income (GILTI) and foreign-derived intangible income (FDII) are refined to align with new international minimum tax standards.
Source: For detailed bill text and legislative intent, see the and official IRS updates as OBBBA provisions are implemented.
How AI Tax Tools and Agentic AI Streamline Business Tax Research
The complexity of OBBBA means manual research is riskier than ever. This is where AI tax research and AI tax planning tools shine:
- Instant Analysis: AI-powered tax tools analyze new law changes, flag business opportunities, and automate compliance checks using up-to-date statutory data.
- Agentic AI in Tax: Next-gen agentic AI systems don’t just answer queries—they proactively suggest planning strategies and monitor your tax position in real time.
- Scenario Modeling: AI tax planning tools generate projections, compare pre- and post-OBBBA outcomes, and help select the best entity structure or asset investment approach.
Get Ready for OBBBA: Upgrade Your Business Tax Strategy Today
The One Big Beautiful Bill Act transforms the business tax landscape. Staying compliant and maximizing your tax position now demands real-time analysis and strategic foresight.
Ready to see how AI tax tools and agentic AI can give your business an edge?
Try our AI tax tool today or book a free demo and see how you can serve your clients with confidence, accuracy, and speed.