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Important Update: The One Big Beautiful Bill Act Passed

  • incentAdvise Team
  • Jul 9
  • 2 min read
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On July 4, 2025, President Trump signed into law the One Big Beautiful Bill Act (OBBBA), marking one of the most significant tax reform packages in recent memory. For innovative companies and real estate investors alike, this legislation represents a return to powerful, upfront tax benefits that had been scaled back in recent years.


R&D Expensing Restored


Since 2022, businesses have been required under Section 174 to amortize R&D costs over five years (domestic) or fifteen years (foreign), straining cash flow and delaying deductions. OBBBA eliminates this requirement and restores immediate expensing for domestic R&D activities.


This change means:

  • Faster benefit: Companies can deduct their full R&D costs in the year incurred.

  • Improved cash flow: More liquidity to reinvest in hiring, innovation, and growth.

  • Stronger incentives: A clearer return on R&D investments, especially for startups and high-growth firms.


100% Bonus Depreciation Returns


Bonus depreciation began phasing down in 2023, dropping to 60% by 2024 and scheduled to fall further in 2025. OBBBA reverses this trend, reinstating 100% bonus depreciation permanently for qualifying assets placed in service after January 19, 2025.


This is especially impactful for businesses leveraging Cost Segregation Studies:

  • Accelerated write-offs on building components and improvements

  • Substantial tax savings in year one of ownership or renovation

  • Enhanced cash flow to fund expansion, upgrades, or new acquisitions


Why It Matters


Together, these provisions dramatically improve the timing of tax benefits for companies that invest in innovation and property. Immediate R&D expensing and full bonus depreciation restore the upfront deductions businesses relied on before the TCJA amortization rules and bonus phase-out.


For incentAdvise clients, this means greater opportunities to:

  • Reduce taxable income through R&D Tax Credits and deductions in the same year

  • Leverage cost segregation to maximize accelerated depreciation benefits

  • Reinvest savings directly into growth, expansion, and innovation strategies


Bottom Line

The One Big Beautiful Bill Act has reset the playing field, restoring tax incentives that strengthen American innovation and investment. Whether you’re developing new technologies or acquiring real estate, 2025 is a pivotal year to take advantage of these enhanced opportunities.

 
 
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