Navigating the New Tax Law: What Small Businesses Need to Know

The big picture: With the April 15 deadline approaching, small business owners filing under the One Big Beautiful Bill Act for the first time have more deductions and credits available than in years — but the clock is ticking.

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The headline wins:

• 20% QBI deduction is now permanent — with a new $400 minimum floor so even the smallest pass-throughs benefit.
• 100% R&E expensing is back — deduct domestic research costs immediately. Businesses under $31M in gross receipts can file amended returns for 2022–2024.
• Bonus depreciation restored — equipment, machinery, software, and even new U.S. manufacturing facilities placed in service since Jan. 20, 2025 can be fully written off.
• Child care credit got a major boost — up to $500K (from $150K) for small businesses covering 50% of qualified expenses. Businesses can now pool resources or use third-party providers.

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What else is on the table: The U.S. Chamber's employer tax guide catalogs 15 credits and deductions many employers overlook, including:

• Paid family leave credit (now permanent, with a new premium-based calculation method)
• $5,250/year tax-free educational assistance per employee (also now permanent and indexed to inflation)
• Up to 50% health insurance premium credit for businesses with <25 FTEs
• Credits for hiring military spouses, veterans, and workers in empowerment zones

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The bottom line: Between retroactive R&E refunds, permanent QBI deductions, and supercharged child care credits, reminding your small business members to make a quick call to their tax pro before Wednesday could pay for itself many times over. And if they need more time, file an extension, but don't skip the savings.

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