OBBB Effective Dates for Businesses
Posted by Cory Van Deusen V on 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.
for more information
Cory has over 20 years of experience providing tax and consulting services to commercial businesses and individuals. His expertise lies in the myriad of business development incentives offered by various federal, state, and local agencies to targeted industries such as Manufacturing, Software Development, Technology Companies and many other in order to encourage regional investment, spur job creation, and foster economic growth. The available incentives include refundable tax credits, tax abatements, grants, and forgivable loans. He has extensive knowledge of Start-Up NY, Opportunity Zones, the Excelsior Jobs Program, Qualified Emerging Technology Companies, and various local incentives such as Industrial Development Agency (IDA) benefits. Additionally, he spends his time providing services to Start-Up Companies ranging from a founder with an idea to multi-national tech companies that have raised hundreds of millions of dollars. Cory has experience in all areas of U.S. federal and NY State taxation. He has been with Lumsden McCormick since 2001, was named partner on January 1, 2015. He is a member of the Firm’s Executive Committee and is head of the commercial services group.