The One Big Beautiful Bill: What Ohio Business Owners Need to Know

The One Big Beautiful Bill Act was signed into law on July 4, 2025. It is the most significant federal tax legislation since the Tax Cuts and Jobs Act of 2017. If you own a business in Ohio, there are several changes that will directly affect your bottom line.

Here are the highlights.

The 20% Pass-Through Deduction Is Now Permanent

Section 199A, the qualified business income deduction, was set to expire after 2025. The OBBB Act made it permanent. If you own an S corporation, LLC, or partnership, you can continue deducting up to 20% of your qualified business income. For many of our clients, this deduction saves them $10,000 to $50,000 per year.

100% Bonus Depreciation Is Back

Bonus depreciation had been phasing down since 2023. The OBBB Act restored 100% bonus depreciation for property placed in service after January 19, 2025. That means if you buy equipment, vehicles, or other qualifying assets for your business, you can deduct the full cost in the year you put them into service. This is a big deal for businesses that are growing or replacing equipment.

Section 179 Limits Nearly Doubled

The Section 179 expensing limit increased to $2.5 million, with the phase-out threshold starting at $4 million. For smaller businesses that do not hit the bonus depreciation numbers, this is another powerful way to write off capital purchases immediately.

R&D Expenses Can Be Deducted Again

Since 2022, businesses had to amortize research and development expenses over five years instead of deducting them immediately. The OBBB Act reversed that. If your business invests in research, software development, or product innovation, you can deduct those costs right away.

The Ohio Catch

Here is the part many business owners miss. Ohio has a fixed conformity date of March 7, 2025. That means the OBBB Act changes do not automatically apply to your Ohio return. The Ohio legislature needs to pass an update to bring state law in line with the new federal provisions.

Until Ohio updates its conformity date, you may see differences between your federal and Ohio business tax calculations. We are watching the legislature closely and will advise clients as soon as changes happen.

What You Should Do Now

Talk to your CPA about how these changes affect your specific situation. If you have been putting off equipment purchases, the timing may be right. If you own a pass-through entity, make sure your estimated payments reflect the permanent 199A deduction. And keep an eye on Ohio conformity. We will send updates as the state legislature acts.

For the full details, visit the IRS hub at irs.gov/newsroom/one-big-beautiful-bill-provisions.