Expert Perspectives

Squire provides complete and personalized accounting solutions to meet your individual needs.

Expert Perspectives

Squire provides complete and personalized accounting solutions to meet your individual needs.

November 4, 2025
Categorized in:

One Big Beautiful Bill Act Tax Planning: 2025 Business and Individual Tax Strategies

By: Greg Hyde, Squire Tax Partner & Mark Boucha, Squire Tax Manager

When Congress passed the One Big Beautiful Bill Act (OBBBA), it introduced some of the most sweeping updates to U.S. tax law in many years. From revised brackets and deductions to expanded credits and business incentives, OBBBA affects virtually everyone, and some of its changes take effect in 2025. Strategic tax planning before year-end 2025 can help you make the most of the new opportunities and avoid unexpected liabilities. 

At Squire, our tax experts help clients turn new legislation into opportunities through personalized, strategic planning. 

Overview of the One Big Beautiful Bill Act  

Who Is Affected?  

Nearly everyone. Business owners will see changes in pass-through tax rates, while individuals will encounter new brackets, credits, and deductions. Investors, families, and high-income earners are especially impacted, making proactive OBBBA tax planning more important than ever. 

Key Business Tax Changes 

Updated Corporate and Pass-Through Tax Rates 

Businesses will see adjusted rate structures, with lower rates for flow-through business owners. Pass-through entities may benefit from new deduction opportunities, although eligibility and limits have shifted. Now is the time to evaluate whether your current entity structure still makes sense for your long-term goals. 

Deductions and Credits to Watch 

The bill expands and modifies several deductions and credits, including: 

  • R&D tax credits to encourage innovation 
    • R&D Expenses – Taxpayers may immediately deduct domestic research and experimental expenses beginning in 2025, with options to re-evaluate the treatment of those expenses incurred in prior years.
  • Depreciation and equipment expensing for capital investment 
    • 100% Bonus depreciation available   
    • Section 179 expensing limit raised to $2.5 million
  • More interest expense which was previously limited under Section 163(j) may now be deductible, as the addback for depreciation, depletion and amortization has been restored.
  • Energy and sustainability incentives, rewarding eco-conscious operations 

These updates create new opportunities for savings under the business tax changes 2025 umbrella. 

Planning Strategies for Business Owners 

Smart business tax planning under OBBBA includes: 

  • Timing income and expenses strategically
  • Maximizing retirement and employee benefit contributions
  • Reviewing other tax law changes which will affect you
  • Consulting with a tax advisor to assess entity optimization 

Read our full One Big Beautiful Bill Business Tax Changes article for details on rates, deductions, and planning opportunities. 

Key Individual Tax Changes 

Adjusted Tax Brackets and Standard Deduction 

The bill revises individual tax brackets and increases the standard deduction, potentially lowering overall tax liability for middle-income earners. However, itemized deductions have been reshaped, meaning some households may need to reevaluate charitable or mortgage strategies. 

New and Expanded Deductions 

  • State and Local Tax (SALT) Deduction: The federal cap increased to $40,000 in 2025, with the deduction phasing out for MFJ taxpayers with modified adjusted gross income between $500,000 and $600,000 
  • Child Tax Credit: Increased from $2,000 to $2,200 per child 
  • “No” Tax on Overtime: The bill provides a deduction of up to $12,500 ($25,000 for joint returns) for qualified overtime compensation received during the year.  The eligible portion is just the pay beyond normal compensation for time worked, and other limits apply.  
  • “No” Tax on Tips: The bill provides a deduction for qualified tips received by individuals working in occupations where tipping is customary.  
  • “No” Tax on Car Loan Interest: Taxpayer can deduct up to $10,000 in interest paid on auto loans for new vehicles assembled in the U.S. for years 2025 through 2028. The deduction phases out for taxpayers with an AGI of $100,000 ($200,000 for married individuals filing jointly). 

New and Expanded Credits 

Several credits have been expanded or reintroduced, including: 

  • Enhanced child and dependent care credits  
  • Broader education expense deductions for 529 Accounts 
    • Now includes elementary and secondary education expenses 
  • Clean-energy home incentives for eco-friendly upgrades – Several of these programs are set to expire in 2025 or 2026.  
    • The Energy Efficient Home Improvement Credit (Sec. 25C) and Residential Clean Energy Credit (Sec. 25D) end after December 31, 2025. 
    • The Clean Vehicle (Sec. 30D) and Previously-Owned Clean Vehicle (Sec. 25E) credits end after September 30, 2025. 
    • The Alternative Fuel Vehicle Refueling Property Credit (Sec. 30C) expires after June 30, 2026. 

Smart Individual Tax Planning Moves 

Individuals can prepare by: 

  • Maximizing retirement contributions to IRAs and 401(k)s
  • Timing charitable donations to align with deduction opportunities
  • Reviewing investment portfolios for capital gains implications

These individual tax planning strategies can significantly reduce your taxable income when applied early. For a closer look at what’s changing for individual taxpayers, explore our One Big Beautiful Bill Individual Tax Changes post. 

Year-End Tax Planning Opportunities 

Timing Matters 

The final months of the year are critical for optimizing your tax position. Consider: 

  • Accelerating deductible expenses before year-end
  • Deferring income if you expect to be in a lower bracket next year
  • Realizing capital losses to offset gains
  • Maximizing HSA and IRA contributions 

Each of these year-end tax planning tips can have a measurable impact on your overall tax bill. 

Partnering with a Professional 

The complexity of OBBB means having a trusted advisor is more important than ever. Squire’s tax professionals can help you: 

  • Interpret new OBBB provisions
  • Identify hidden opportunities for deductions and credits
  • Develop a customized, forward-looking tax strategy 

Why Work With Squire 

Squire’s comprehensive approach combines tax strategy, business advisory, and financial planning under one roof. Our experts stay at the forefront of evolving legislation like OBBB, helping clients navigate change confidently. 

From small businesses to large corporations and individual taxpayers, we translate complexity into clarity so you can make informed, proactive financial decisions. 

Don’t wait until tax season—schedule a consultation today!