What President Trump’s "Big, Beautiful Bill" Means for Small Businesses

Big news for small businesses across America: President Donald Trump’s much-anticipated “Big, Beautiful Bill” has officially passed the House, and he’s expected to sign it into law on July 4. This massive 887-page legislation is being hailed as one of the most consequential economic bills in recent history — and it could bring sweeping changes to how small businesses invest, grow, and plan for the future.

Here’s what you need to know.

A Historic Moment for American Business

Passed by a narrow 218-214 vote, the Big, Beautiful Bill arrives with perfect timing: Independence Day. House Speaker Mike Johnson called it “the big, beautiful bill for America,” celebrating its potential to reshape the economy. And yes — there’s even a Domino’s Pizza-style tracker on the White House website counting down to the bill’s signing.

Why Small Businesses are the Big Winners

One of the biggest advocates for the bill is Gene Marks, CPA and small business owner, who said on Fox News that the legislation is a game-changer: “There are certain tax provisions in this bill — investments in capital equipment, research and development spending, increasing the estate tax exemption — that have all been made permanent. This gives small businesses the certainty to make long-term decisions.”

That certainty could mean more investments in hiring, expansion, and planning for future generations.

Key Provisions for Small Businesses

Here are some of the bill’s highlights that will directly affect entrepreneurs and small business owners:

✅ Permanent 2017 Tax Cuts
The bill makes the 2017 Tax Cuts and Jobs Act’s tax breaks permanent, including deductions for research and development expenses. This change gives businesses the confidence to invest in innovation without worrying about future tax code shifts.

✅ Expanded Building Deductions
Businesses can now fully deduct the cost of new manufacturing facilities much faster. The Associated Builders and Contractors (ABC) praised the bill for creating tax certainty that helps contractors invest in growth and keep America building.

✅ Franchise Boost
The International Franchise Association (IFA) backed the bill, emphasizing that it will positively impact America’s 830,000 franchise businesses and their 9 million employees. The IFA credits permanent tax relief with giving franchise owners the stability they need.

✅ Tax-Free Tips
For workers in tip-heavy industries like restaurants, bars, and beauty services, tips will no longer be taxed as income at the federal level. However, this exemption only applies until 2028, and it’s capped at $25,000 in annual tips. Workers earning $150,000+ ($300,000 for joint filers) don’t qualify.

✅ Overtime Pay Tax Relief
The bill eliminates federal income tax on overtime pay, potentially saving workers up to $2,000 annually. This provision aims to reward those putting in long hours, especially in industries like construction and skilled trades.

✅ Bigger SALT Deductions
Starting in 2025, the cap on the federal deduction for state and local taxes (SALT) will rise from $10,000 to $40,000, benefiting many higher-income earners in states with high taxes.

✅ Interest Deductions Based on EBITDA
Instead of calculating interest deductions based on EBIT (earnings before interest and taxes), businesses can now use EBITDA (which includes depreciation and amortization), letting them deduct billions more in expenses.

Why This Matters for Your Business

President Trump called the Big, Beautiful Bill “one of the most consequential bills ever,” and for many small business owners, it could provide long-awaited stability. The certainty of knowing tax laws won’t shift dramatically allows for better planning, smarter investments, and the ability to grow your company without second-guessing your tax exposure.

Final Thoughts

Whether you’re a contractor, franchise owner, or entrepreneur dreaming of your next big idea, these provisions could directly impact your bottom line. From permanent tax cuts to tax-free tips and bigger deductions, the Big, Beautiful Bill has the potential to spark a new wave of small business growth across America.

Stay tuned as we keep you updated on how these changes unfold. And remember, understanding how these provisions affect your credit and finances is key to positioning your business for success.

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Source: Entrepreneur.com