The U.S. House of Representatives recently passed a sweeping tax bill—nicknamed the “One Big, Beautiful Bill”—that could reshape the financial landscape for individuals and business owners alike. Although it hasn’t yet passed the Senate, and we have no idea whether it will ever be signed into law, the potential implications are significant. Now is the time to get ahead of the curve and prepare.
You can read the full text of the bill here: H.R.1 – One Big Beautiful Bill Act(congress.gov)
Bookmark this page for updates as the legislation moves forward. Additionally, I realize that our society is extremely politically charged these days, and half of our country may think this bill is beautiful and a step in the right direction, while the other half think it’s a step in the wrong direction and not so beautiful. Regardless of whether you identify as blue, red, purple, or green, I want this to serve as a safe space for all. Although I have strong political beliefs, the purpose of this blog is to educate my clients, colleagues and community on how to best protect your family, wealth and legacy, so I think it’s extremely important to identify how any changes, whether you may or may not support them personally, could affect your family or your business. So, now that we’ve got the PSA out of the way, let’s dive in and break down some of the most important proposed changes…
100% Bonus Depreciation Could Be Back
For business owners and real estate investors, one of the most impactful changes is the proposed restoration of 100% bonus depreciation. Right now, you can only deduct 40% of the cost of business assets like equipment, vehicles, or furnishings in the year of purchase. This bill would allow you to deduct the entire amount immediately.
Let’s say your business buys $100,000 in equipment—under the new rules, you could write off the full $100,000 in year one. This opens the door for significant tax planning opportunities, especially when paired with cost segregation strategies for real estate investors. Items like appliances, flooring, and lighting can be depreciated faster than the building structure, and now potentially at 100% in the first year.
R&D Deductions Could Get Friendlier—If You Stay Domestic
The bill also reverses a 2022 change that forced businesses to spread research and development (R&D) expenses over five years. The new legislation allows immediate deductions again—but only for domestic research.
Foreign R&D would still be amortized over 15 years, incentivizing companies to keep their innovation efforts within the U.S. If your business relies on R&D, now is the time to revisit how and where you’re allocating those resources.
SALT Deduction Cap Would Quadruple
For individual taxpayers, especially those in high-tax states like Illinois, the legislation would increase the SALT (State and Local Tax) deduction cap from $10,000 to $40,000. This is a major shift that could lower taxable income substantially for many families.
For more on the current SALT deduction and how it works, check out this IRS overview of state and local tax rules.
Tax Credits for Families and Workers
Parents would see the Child Tax Credit increase from $2,000 to $2,500 per child. This is a dollar-for-dollar reduction in tax liability—not just a deduction. Multiply that by several children and you’re looking at thousands of extra dollars retained at tax time.
Other individual changes include:
- No federal taxes on cash tips for food service and beauty industry workers earning less than $160,000.
- Tax-free overtime pay, specifically the extra “half” portion of time-and-a-half (excludes those earning over $200,000/year).
- Auto loan interest deductions up to $10,000 for low- and middle-income taxpayers.
- Federal Estate Tax Exemption increase to $15 million per individual and $30 million for married couples.
Most Benefits Expire in 2028—Start Planning Today
Many of these provisions come with income thresholds and phaseouts, which means planning ahead is essential. If you earn just over the limit, you might lose out on major benefits.
This is a critical time to take stock of your finances, understand where your income falls, and put a plan in place to make the most of these changes while they last. For a deeper dive into how upcoming legislative changes might impact your estate planning strategies, explore our detailed analysis here. fwlls.com
Want to Prepare Strategically?
At Family Wealth & Legacy Legal Solutions (FWLLS), we help families and business owners build comprehensive legal strategies that align with their financial goals—now and into the future.
Schedule your Family Wealth & Legacy Strategy Session™ to learn how these changes could impact your estate, your taxes, and your long-term legacy planning.
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This article is a service of Family Wealth & Legacy Legal Solutions (FWLLS). At FWLLS, we do not just draft documents; we ensure you make educated, informed and empowered decisions for yourself and the people you love. That’s why we offer a Family Wealth & Legacy Strategy Session™, during which you will get educated and begin to prepare to avoid life’s most common legal problems and get a plan in place to make the best possible choices for the people you love. You can begin by calling our office today to schedule a Family Wealth & Legacy Strategy Session and mention this article to find out how to get this $900 session at a significantly discounted rate, or even for free.