Small business owners have new opportunities to grow, invest, and plan for the future thanks to the recently passed One Big Beautiful Bill Act. In today’s episode of U.S. Chamber of Commerce Small Business Update, Tom Sullivan, vice president of Small Business Policy at the U.S. Chamber of Commerce, unpacks what this new law means for small business owners.
The One Big Beautiful Bill Act (OBBBA) delivers two major benefits: immediate cash relief and permanent tax provisions that create long-term predictability.
Freeing up cash is urgent for small businesses. Owners can now reinvest in hiring, employee pay, and operational growth without the uncertainty that comes from expiring tax rules. The bill makes previously temporary measures, like research and development immediate expensing, permanent, giving small businesses the confidence to invest without worrying about sudden tax changes.
Among the law’s headline provisions is the permanent 20% qualified business income (QBI) deduction, which applies to sole proprietors, LLCs, and S-Corps. The bill also raises the state and local tax deduction cap, preventing federal tax savings from being offset by higher state taxes. This ensures small businesses retain more of their capital for investment.
Investment incentives include a doubled 179 Expensing cap, from $1.25 million to $2.5 million for equipment, computers, and office furniture, as well as 100% bonus depreciation for amounts exceeding that cap. These measures allow small business owners to make significant purchases now while optimizing tax benefits. Sullivan cautions owners to act promptly, as delays until the start of next year can complicate filing and require amendments to past returns.
"Congress realized that in order for the United States to remain competitive, they really need to have the wind at the back of small business owners that want to grow and create that competitive environment so that the United States stays ahead."
The law also provides employee-focused benefits, such as no tax on tips or overtime, helping businesses retain and reward their workforce. Sullivan notes that the legislation is designed to create a competitive environment for U.S. small businesses while supporting employees as a key asset.
Looking ahead, Sullivan says now is an ideal time to start a business, citing both the growth enabled by the new law and the transformative potential of artificial intelligence. Combined with potentially lower interest rates in the coming years, small business owners are positioned to ride a wave of economic growth.
Sullivan also highlighted the Chamber’s upcoming CO 100 event in Washington, D.C., celebrating the top 100 small businesses in the nation. The event provides exposure, networking, and recognition for entrepreneurs who have achieved measurable success, reinforcing the Chamber’s commitment to promoting small business growth.
U.S. Chamber of Commerce Small Business Update