OBBB Effective Dates for Businesses

August 14, 2025

The OBBA introduces several impactful tax provisions for businesses, effective across multiple tax years:

  • 2025 (No Expiration): Businesses benefit from 100% bonus depreciation for qualifying property, enhanced Sec. 179 expensing, restored 1099-K thresholds, full expensing of domestic R&E under new Sec. 174A, and modified interest deduction limits
  • 2025 (Expires 12/31/25): Deduction allowed for unamortized pre-2025 domestic R&E, either fully in 2025 or spread over two years
  • 2026 (No Expiration):1099 reporting threshold increases to $2,000 (indexed for inflation from 2027), plus continued support for new markets and low-income housing credits, and a 1% floor on corporate charitable deductions
  • Additional Highlights: Retroactive R&E election for small businesses (2022–2024), limitations on certain ERC claims (Q3 & Q4 2021), and permanent extension of the Qualified Opportunity Zone program starting 2027

For personalized guidance on how these changes may impact your business tax situation, contact your Lumsden McCormick advisor.

Download a one-page summary of Effective OBBB Dates for Businesses here.
Download a two-page summary of Effective OBBB Dates for Individual Taxpayers here.

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