Small Business Gets Tax Relief Under New Bill — But It's Not All Permanent

The recently passed Big Beautiful Bill delivers targeted tax relief for self-employed individuals and small business owners. While several key provisions are permanent, others are set to expire, creating a mixed landscape for long-term planning.

Major Wins for Business Owners

The bill makes the 20% Qualified Business Income (QBI) deduction permanent, benefiting pass-through entities like LLCs and S-corps (TheStreet).

It also restores 100% bonus depreciation and raises Section 179 expensing limits, allowing faster write-offs on equipment and capital assets (Comerica).

The 1099-K reporting threshold was raised back to $20,000 and 200 transactions, easing compliance for gig workers and online sellers (WDC News 6).

Not Everything Lasts

Some deductions — such as for tips and overtime — are temporary, expiring in 2028 unless extended. Phaseouts still apply to high earners in professional services, limiting access to certain benefits (IRS).

And while the bill provides stimulus, its cost raises concerns about potential interest rate hikes, which could impact business lending (NerdWallet).

Bottom Line

The Big Beautiful Bill offers strong incentives for small businesses, especially around deductions and investment. But with temporary provisions and income limits, strategic planning will be essential.