Impacts of the Big Beautiful Bill
What Every Owner and Taxpayer Needs to Know in 2025
Congress just passed the sweeping “Big Beautiful Bill,” and its provisions will shape how both small businesses and individuals in Texas plan their finances over the next decade. But here’s the key: not all changes affect everyone the same way. Below, we break down what’s changing and who it helps.
Key Changes for Texas Businesses
1. 100% Bonus Depreciation Returns
One of the biggest wins for small businesses: the full expensing of qualifying equipment purchases is back. Through 2026, business owners can deduct 100% of the cost of machinery, computers, furniture, and other eligible assets in the year they’re placed in service. This is a huge cash flow advantage, especially for construction, manufacturing, medical, and tech firms making large purchases.
2. Permanent Tax Cuts for S-Corps and LLCs
The 2017 Tax Cuts and Jobs Act's lower rates are now locked in permanently. This includes the 21% corporate rate and the Section 199A 20% deduction for pass-throughs. S-corp and LLC owners can build long-term strategies without fear of rate jumps in 2026.
3. Tip and Overtime Income Deductions (for Employers)
Employers in restaurants, hospitality, and healthcare should take note: employee tip income (up to $25,000) and overtime pay (up to $12,500) per worker are now tax-exempt through 2028. Employers must track this income properly to ensure compliance and maximize the benefit for their teams.
Key Changes for Individual Taxpayers
1. SALT Deduction Cap Raised
Texas doesn’t tax income, but our property taxes can be steep. The State and Local Tax (SALT) deduction cap now increases to $40,000 for households earning under $500,000, available through 2029. This is especially helpful for high-income homeowners in Collin County, Dallas, and surrounding suburbs.
2. Expanded Estate and Gift Tax Exemption
The federal estate tax exemption is now $15 million per individual (indexed for inflation), offering Texas families with significant real estate, ranching assets, or business equity a much broader window for strategic gifting and legacy planning.
What You Should Do Now
Business Owners:
Evaluate equipment needs before year-end to lock in bonus depreciation
Review payroll systems to accurately track qualifying tip/overtime income
Solidify S-corp or LLC planning strategies under the new permanent tax landscape
Individuals and Families:
Review property tax totals and coordinate with your CPA to maximize the SALT deductio
Revisit estate plans to align with the expanded exemption window
Hill Durnin CPAs helps Texas business owners and families build integrated strategies across both personal and business taxes. Let’s make the most of these new rules.