Posted by Jeffrey Feingold on 10.29.25
On July 4, 2025, President Trump signed the “One Big Beautiful Bill Act” (H.R. 1) into law. This sweeping legislation locks in lower tax rates, and restores some valuable incentives for business owners, including 100% Bonus Depreciation, immediate R&D expensing, and the Section 199A Qualified Business Income Deduction.
For business owners, this isn’t just good news–it’s a call to action. The new rules create opportunities to save big before the end of 2025, but only if your tax planning strategy is in place in time.
At Tax Point Advisors, we help companies nationwide capture these credits and deductions, through proactive planning and documentation. With the end of the tax year approaching, it’s time to make sure your business is ready to maximize every available benefit.
Full Bonus Depreciation Is Back
Under the new law, businesses can immediately expense 100% of qualified property costs, such as new equipment, machinery, and certain improvements in the year those assets are placed in service.
Previously scheduled to phase out by 2027, Bonus Depreciation is now permanent for property placed in service after January 19, 2025.
Why This Matters for Year-End Planning
• Purchases and installations completed before December 31, 2025, qualify for full write-offs.
• Large equipment purchases or facility improvements made this year can yield immediate tax savings.
• Strong incentive for businesses to invest before year-end to lock in first-year deductions.
In addition, the Act expands eligibility to include certain “qualified production property,” such as facilities used for manufacturing or refining, if construction begins before 2029. Combining Bonus Depreciation with a Cost Segregation Study can further accelerate deductions and reduce taxable income for 2025.
R&D Expensing Restored — Don’t Wait to Claim It
One of the most impactful provisions for innovative companies: domestic research and development (R&D) costs are now fully deductible in the year incurred.
This reverses the previous TCJA requirement to amortize R&D costs over five or fifteen years.
What’s New:
Why Act Before Year-End:
R&D expensing and the R&D Tax Credit can be coordinated to minimize 2025 taxable income, while for some taxpayers also creating carry forward credits for future years. Documenting eligible research before the close of the tax year is key, and once the books close, those deductions are harder to capture.
Tax Point Advisors can help identify qualified R&D activities, quantify expenses, and prepare the necessary documentation to ensure you don’t leave valuable credits on the table.
Expanded Business Interest Deductions
The Act permanently restores the ability to add back depreciation, amortization, and depletion when calculating limits on business interest expense deductions. This more generous calculation means more deductible interest expense, which can significantly improve cash flow for businesses relying on financing or equipment loans. This provision is effective retroactively to January 1, 2025, making it an important part of your 2025 tax strategy review.
Section 199A Deduction is Permanent for Pass-Through Businesses
If you operate through an S corporation, partnership, or LLC, there’s great news: the 20% Qualified Business Income (QBI) deduction under Section 199A is now permanent. Even better, the income phase-out thresholds are increased to $150,000 for joint filers, allowing more business owners to qualify for the full deduction. This deduction can reduce your effective tax rate and is a cornerstone of year-end planning for small and mid-sized businesses.
Why Year-End 2025 Tax Planning Matters More Than Ever
The new law has created an unprecedented window of opportunity, but the window is time sensitive. To take advantage of full expensing, R&D deductions, and bonus depreciation, the right actions must be taken before year-end.
Proactive planning helps you:
• Time asset purchases and service dates for maximum 2025 deductions.
• Document eligible R&D expenses for immediate or retroactive tax benefits.
• Evaluate business structure changes to maximize Section 199A eligibility.
• Review depreciation schedules, interest limits, and loss carry forwards before filing season.
Many of these strategies require careful coordination between your CPA, your accounting department, and tax credit specialists, and that’s where Tax Point Advisors comes in.
Partner with Tax Point Advisors for Strategic 2025 Tax Planning
At Tax Point Advisors, we help business owners leverage the full power of the tax code through:
• R&D Tax Credit Studies
• Cost Segregation Studies
• Bonus Depreciation Reviews
• Energy Efficiency Incentives (Sections 179D and 45L)
• Comprehensive Year-End Tax Planning
We work together with you and your CPA to ensure every qualifying activity, expense, and asset is fully documented and optimized before December 31.
Don’t Leave 2025 Tax Savings on the Table
With the One Big Beautiful Bill Act now in effect, 2025 is the year to act. The steps you take before year-end can directly impact your tax bill, your cash flow, and your long-term financial strategy.
As you plan your 2025 year-end tax strategies, remember our experts at Tax Point Advisors provide comprehensive R&D tax credit studies and other specialty tax services to CPA firms and their clients throughout the U.S. To learn more about R&D tax credits or other tax credits and incentives from the experts at Tax Point Advisors, please call us at (800) 260-4138.
