In Brief:
The One Big Beautiful Bill Act (OBBB) permanently locked in historically low tax rates and introduced several powerful — and in some cases time-limited — planning opportunities for business owners. Key changes include a permanent 20% business income deduction, higher estate tax exemptions, immediate equipment write-offs, and a temporary $6,000–$12,000 deduction for business owners age 65+. Strategic planning before 2028 is essential to fully capitalize on these benefits.
If you own a business, the OBBB may materially change how — and when — you plan.
Signed into law in 2025, the OBBB made some of the lowest tax rates in modern history permanent while opening the door to meaningful tax-reduction strategies for business owners. The catch? Many of the most valuable opportunities require intentional planning over the next few years.
Here are five areas business owners should be reviewing now.
- Higher Estate Tax Exemptions Simplify Business Succession
The federal estate tax exemption increased to $15 million per person ($30 million for married couples) — and is now permanent.
For years, many business owners implemented complex estate strategies to avoid heirs being forced to sell a business to pay estate taxes. With today’s significantly higher exemption, some of those strategies may no longer be necessary — while others can now be executed with far greater clarity.
This shift allows business owners to focus less on tax avoidance and more on:
- Family harmony
- Operational continuity
- Thoughtful succession planning
For larger estates that still exceed the exemption, the permanence of the law provides confidence to implement advanced strategies with less legislative risk.
A comprehensive review can often uncover opportunities to simplify structures, reduce unnecessary costs, and improve long-term outcomes.
- A Permanent 20% Deduction on Qualified Business Income
The 20% Qualified Business Income (QBI) deduction is now permanent, providing long-term certainty for pass-through business owners.
If you operate as an S-corp, LLC, partnership, or sole proprietor, you may be able to deduct up to 20% of qualified business income. On $500,000 of QBI, that’s a $100,000 deduction — potentially saving $35,000 or more annually.
That said, the rules are nuanced:
- Specified Service Trade or Businesses (SSTBs) face income phase-outs
- W-2 wages and business assets impact eligibility
- Strategic compensation planning can significantly increase deductions
Now that the deduction is permanent, business owners can make structural decisions with confidence — but maximizing the benefit at higher income levels requires careful coordination.
- An Extra $6,000–$12,000 Deduction for Business Owners 65+ (Through 2028)
From 2025 through 2028, business owners age 65 or older qualify for an additional $6,000 deduction per person ($12,000 for married couples). The deduction phases out above $75,000 (single) or $150,000 (married filing jointly).
Many business owners continue working past 65 — consulting, serving on boards, or running leaner operations. This temporary deduction creates planning opportunities around:
- Income timing
- Expense management
- Modified adjusted gross income thresholds
Missing the income limits could mean losing the deduction entirely, making proactive planning especially important.
- Lock in Today’s Historically Low Tax Rates
The OBBB permanently set the top federal tax rate at 37%, well below prior levels — and increased the amount of income allowed in lower brackets.
For example:
- In 2017, a married couple earning $450,000 was in the 35% bracket
- In 2026, that same income just begins entering the 32% bracket
This creates a powerful opportunity for Roth conversion planning, especially for business owners with fluctuating income or upcoming transitions.
Business owners often hold significant balances in tax-deferred accounts (SEP IRAs, Solo 401(k)s, traditional IRAs). Strategic Roth conversions during lower-income years — such as after selling a business or before Social Security begins — can significantly reduce lifetime taxes.
- Immediate Write-Offs for Equipment Purchases
100% bonus depreciation is now permanent for qualified property acquired after January 19, 2025.
Rather than spreading depreciation over several years, businesses can now deduct the full cost of qualifying equipment and vehicles immediately. This can dramatically improve cash flow and accelerate tax savings.
Businesses that may benefit include:
- Manufacturers purchasing equipment
- Service firms upgrading vehicle fleets
- Real estate investors using cost-segregation strategies
The timing of these purchases, however, can impact other areas of your tax plan — making coordination essential.
Why Coordinated Planning Matters
Each of these opportunities interacts with the others:
- Equipment purchases affect QBI deductions
- Roth conversions influence future tax brackets
- Estate planning changes may reduce insurance needs
When viewed in isolation, opportunities can be missed — or worse, offset each other.
At Evergreen Wealth Advisors, we specialize in helping business owners align tax strategy, retirement planning, succession planning, and investment management into one coordinated plan.
Your Next Step
The OBBB created unprecedented opportunities for business owners — but several are time-sensitive, especially for those nearing retirement or planning an exit.
If you’d like to understand how these changes apply to your business and personal situation, we invite you to schedule a Business Owner Tax Strategy Review with Evergreen Wealth Advisors.
We’ll help you:
- Identify which OBBB opportunities apply to you
- Reduce unnecessary taxes
- Optimize your business and retirement strategy
- Plan confidently for the years ahead
Contact Evergreen Wealth Advisors today to start the conversation.