August 29, 2025
This column has been missing from several recent issues of BoxScore. The on-again, off-again nature of tariffs and the slow grind through Congress of the extension of the 2017 tax cuts, coupled with the editorial timeline, brought uncertainty down to page level.
That all changed on July 3, 2025, with the passage of the so-called One Big Beautiful Bill Act (OBBBA) and with President Donald Trump signing it into law. Regardless of your politics, there are several wins in this bill for AICC members. AICC and its partners on Capitol Hill have been pushing for many measures included in the OBBBA for the past several years. Here is a summary.
Immediate Expensing for R&D and Capital Assets
- R&D: Businesses can immediately deduct 100% of domestic research and development costs instead of amortizing over five years.
- Bonus depreciation and Section 179: Full expensing (100%) of equipment, machinery, and qualified property—permanent for assets placed in service after early 2025. This is a huge plus for independents because it brings certainty to equipment purchasing decisions.
Favorable Interest Deduction Rules
- Interest deduction limitation is now based on earnings before interest, taxes, depreciation, and amortization, not just earnings before interest and taxes. A permanent change that allows businesses to deduct more interest.
SALT Deduction Relief for Pass-Throughs
- Individual state and local tax (SALT) deductions are now capped at $40,000 (indexed), and pass-through entities retain the ability to claim SALT deductions.
Pass-Through Tax Cuts and Small-Business Support
- The 20% qualified business income deduction for pass-through entities is now permanent, giving small businesses and S corporations tax planning certainty.
- Bonus enhancements for qualified small-business stock, lifting exclusion limits and increasing eligibility caps.
Increasing Unified Estate, Gift, and GST Exemptions
- A permanent change to $15 million per individual and $30 million per couple, indexed for inflation.
Manufacturing and Made in America Incentives
- 100% immediate expensing now applies to new factories and manufacturing equipment.
- Specific incentives for qualified production property support domestic manufacturing, offering job creation and competitive domestic products.
Corporate R&D Accounting Alignment
- R&D expense treatment aligns with generally accepted accounting principles, or GAAP, allowing immediate recognition and improving deferred tax asset management.
Expanding the Use of 529 Savings Plans
- The Freedom to Invest in Tomorrow’s Workforce Act,included in the bill,expands qualified expenses under 529 savings plans to include postsecondary training and credentialing. Those 529 plans are no longer only for university education.
I encourage all AICC members to consult with their tax advisors and financial planners to ensure that you take advantage of all that the OBBBA has to offer. For a thorough rundown, check out Mitch Klingher’s Strength in Numbers column on p. 64.
Eric Elgin is owner of Oklahoma Interpak and chairman of AICC’s Government Affairs subcommittee. He can be reached at 918-687-1681 or eric@okinterpak.com.
