On July 4, 2025, President Trump’s One Big Beautiful Bill Act (OBBB) was enacted. This legislation introduces significant tax reforms that will impact small businesses.
Neil Bradley, Executive Vice President and Chief Policy Officer at the U.S. Chamber of Commerce, joined CO— Editor in Chief Jeanette Mulvey to discuss the OBBB’s implications for small business owners. He also shared updates on tariffs, immigration, and other policy priorities affecting entrepreneurs nationwide.
A major aspect of the OBBB is making several provisions from the 2017 Tax Cuts and Jobs Act permanent. These include a 20% qualified business income deduction for pass-through businesses, 100% bonus depreciation for new capital investments, increased interest deductibility limits, and immediate R&D expensing retroactive to January 2022 for certain businesses. The state and local tax deduction has also increased from $10,000 to $40,000 annually.
“For those with income of less than half a million dollars a year… you’ll have an expanded ability for the next several years to claim a bigger deduction for the taxes that you pay [to] state and local [entities],” said Bradley.
The OBBB also offers new tax credits to help businesses support employees. The paid leave tax credit is now permanent and applicable even in states with mandatory paid leave. Small businesses can claim up to 50% of childcare costs as a credit and pool resources with other local businesses for shared services. Additionally, employers can contribute up to $5,250 toward employees’ student loans tax-free.
Despite these benefits, rising tariffs present challenges. The previous pause on reciprocal tariffs ended on July 8, with new tariffs starting August 1 on goods such as EVs and semiconductors. Approximately 242,000 small businesses import goods annually and are affected by increasing costs.
Regarding immigration changes, the Trump administration plans to rescind some work authorizations affecting industries like hospitality and agriculture. “The conundrum…for employers is that you currently have no way of knowing that other than your employee telling you,” stated Bradley.
For further insights from Neil Bradley regarding these topics, watch the full Small Business Update video above.
