09/15/2025
🚀 Startup Win: What the “One Big Beautiful Bill Act” Means for Founders
The One Big Beautiful Bill Act (OBBBA) (Public Law No. 119-21; signed into law July 4, 2025) just delivered some game-changing benefits for startups. If you're building something new or growing fast, you’ll want to know this. 💡
Here are the top advantages:
1️⃣ R&D Expensing (IRC §174A) — Startups can now immediately deduct domestic R&D expenses rather than amortizing them over many years. Plus: you may be able to go back and amend your returns for 2022-2024 to unlock savings.
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2️⃣ Permanent 100% Bonus Depreciation — Big capex? Equipment, machinery, property purchases made after Jan 19, 2025 now get full depreciation in the current year. Better for cash flow.
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3️⃣ Beefed-Up QSBS Benefits (IRC §1202) — Qualified Small Business Stock rules got sweeter: looser qualification, earlier sales don’t kill all benefits, and exclusion thresholds raised (up to ~$750M per issuing corp). Founders & early employees, take note.
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4️⃣ Higher Pass-Through Deductions & Small Business Relief — The 199A deduction for pass-throughs (LLCs, S-corps etc.) has increased from 20% → 23%. Combine with bonus depreciation + QSBS = multiple levers for tax efficiency.
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🔍 What You Should Do Now
Review your recent R&D expenses to see if you can amend returns.
Plan future equipment or asset purchases to take advantage of 100% bonus depreciation.
Audit your structure and prospects to understand if you qualify for QSBS benefits.
Talk to your tax/advisory team — timing & strategy matter.
💬 Founder Tip: These changes are more than just academic. Better tax treatment, improved cash flow, and stronger exit upside = real fuel for growth. Don’t sleep on them.
&D