2026 Business Tax Changes: How OBBBA Unleashed a Wave of New Tax Benefits
On July 4, 2025, the One, Big, Beautiful Bill Act (OBBBA) became law, fundamentally reshaping the tax landscape for every U.S. business owner, freelancer, and self-employed taxpayer [1]. Instead of the widely expected expiration of the Tax Cuts and Jobs Act (TCJA), OBBBA made many of its pro-business provisions permanent and introduced powerful new incentives.
This Affects:
- LLC and S-Corp owners
- Sole proprietors and Partnerships
- C-Corporations
- Real estate investors
- Gig workers and freelancers
- E-commerce businesses
- Professional service firms
- Contractors and trades
If you run any type of business, these changes will impact your bottom line. But instead of tax hikes, they present an opportunity for massive tax savings. Failing to plan for this new landscape means leaving thousands of dollars on the table.
This guide breaks down every key 2026 business tax change under OBBBA and how you can capitalize on them.
Guaranteed Strategy Backed by New Law
All projections come directly from the One, Big, Beautiful Bill Act (Public Law 119-21) and official guidance from the Treasury.
Maximum Savings Promise
If we miss a legal business deduction or strategy available to you under OBBBA, we will redo your plan for free.
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Every plan is reviewed by a licensed MERNA™ Strategist specializing in the new 2026 business tax laws.
QBI (20% Pass-Through Deduction) is Now PERMANENT and ENHANCED
This is the #1 most important business tax change in 2026. The deduction is NOT ending; it’s here to stay and it’s better than ever.
The QBI deduction, which allows pass-through businesses to deduct up to 20% of their qualified business income, was made permanent by OBBBA.
Who benefits from the permanent QBI deduction?
- LLCs, Sole proprietors, Partnerships, and S-Corps
- Consultants, agencies, and real estate professionals
- High-earning service providers and online businesses
- Any pass-through business owner who wants to keep more of their hard-earned money.
Furthermore, OBBBA enhanced the deduction by widening the income phase-out ranges and adding a new minimum deduction, making it accessible to more business owners than before.
Bonus Depreciation RESTORED to 100% and Made PERMANENT
For businesses that purchase equipment, vehicles, or property, this is a game-changer. The scheduled phase-out of bonus depreciation has been completely reversed.
- 100% bonus depreciation is PERMANENTLY RESTORED for qualifying property acquired and placed in service after January 19, 2025.
- This allows for an immediate, full write-off of the cost of new and used assets.
- Real estate investors, who can now get even more value from cost segregation studies.
- Transportation, construction, and manufacturing companies investing in heavy equipment.
- Any business buying vehicles, computers, or machinery
This is not a “final window”; it is a permanent opportunity to accelerate deductions and reinvest in your business.
Section 179 Deduction DOUBLED to $2.5 Million
Instead of tightening, the rules for Section 179 have been significantly expanded.
- Maximum Deduction Increased: The annual Section 179 deduction has been doubled from $1 million to $2.5 million.
- Phase-Out Threshold Increased: The investment limit before the deduction phases out has been raised from $2.5 million to ,$4 million.
This gives businesses greater flexibility to immediately expense the full cost of large purchases, including SUVs over 6,000 lbs, heavy trucks, and property improvements.
Corporate Tax Rate Remains at a Flat 21%
Despite political pressure and speculation, the 21% C-Corp tax rate remains unchanged under OBBBA . The low rate established by the TCJA is permanent, providing certainty for startups, large corporations, and any business considering a C-Corp structure for funding or an exit strategy.
New & Enhanced Business Credits and Deductions
OBBBA also introduced or enhanced several other valuable business provisions:
- Immediate R&D Expensing: The requirement to amortize domestic R&D expenses over five years has been repealed. Businesses can now immediately deduct 100% of their R&D costs in the year they are incurred, boosting cash flow for innovative companies
- New Tip and Overtime Deductions: Businesses in the service and hospitality industries can now benefit from new deductions related to employee tip and overtime income
- Work Opportunity Tax Credit (WOTC): This valuable credit for hiring individuals from targeted groups has been extended.
2026 Planning Strategies for the Modern Business Owner
- Leverage 100% Bonus Depreciation: Plan major equipment, vehicle, and property purchases to take full advantage of the immediate 100% write-off.
- Maximize the $2.5M Section 179 Deduction: Strategically expense large asset purchases to reduce your taxable income.
- Revisit Your Entity Structure: With the QBI deduction now permanent and enhanced, an S-Corp or LLC structure may be more valuable than ever. Analyze what’s best for your specific situation.
- Invest in R&D: With immediate expensing restored, now is the time to double down on innovation.
- Optimize New Deductions: Implement systems to track tip and overtime income to ensure you’re prepared to claim these new deductions.
2026 Business Tax Change FAQ
Do all small businesses pay more tax in 2026?
No. In fact, most businesses will have the opportunity to pay less tax in 2026 thanks to the permanent and enhanced deductions in OBBBA.
Is QBI definitely staying?
Yes. The One, Big, Beautiful Bill Act made the 20% pass-through deduction a permanent part of the tax code.
Should I buy vehicles or equipment now or in 2026?
With 100% bonus depreciation permanently restored for assets placed in service after January 19, 2025, you have long-term flexibility. The urgency is no longer about a disappearing deadline but about strategic timing for your business’s cash flow and growth.
Are real estate businesses hit hard?
Quite the opposite. Real estate investors are among the biggest winners, as the permanent 100% bonus depreciation makes strategies like cost segregation incredibly powerful for generating large, immediate deductions.
Get Your Custom 2026 Business Tax Plan
2026 has reshaped the tax landscape in favor of the prepared business owner. Your entity structure, deduction strategy, and investment schedule MUST be updated to align with this new reality.