Navigating the new One Big Beautiful Bill (OB3): What Small Business Owners Need to Know

Feeling overwhelmed by yet another sweeping piece of legislation? You’re not alone. Last Friday, July 4, President Trump signed the One Big Beautiful Bill (OB3) into law. It's a massive, 870-page act packed with tax changes, incentives, and sunsets.

For busy solopreneurs and small business owners, keeping up can feel like wandering through a labyrinth of legalese. Here’s a clear, high-level roadmap to the tax-related highlights in Title VII (“Finance”) and a sneak peek at key non-tax provisions so you can focus on running your business, not deciphering 870 pages of code.

What Is the One Big Beautiful Bill (OB3)?

OB3 consolidates dozens of policy changes across tax, health, energy, and fiscal rules into one omnibus act. While we’ll eventually dig into each chapter, Section VII (starting on page 5) zeroes in on the Internal Revenue Code updates and related tax provisions that impact middle-class families, businesses, and entrepreneurial growth.

Key Tax Provisions for 2025 and Beyond

1. Making Permanent Middle-Class Relief

• What changed: The 2017 Tax Cuts and Jobs Act (TCJA) provisions like lower individual rates, expanded child tax credits, and higher standard deductions were set to expire but are now effectively permanent for “middle-class family workers.”

• Why it matters: No more racing against sunset deadlines: you can plan long-term around TCJA benefits without worrying they’ll vanish next decade.

2. New Middle-Class Tax Breaks

• No tax on tips & overtime pay: Employees keep more of what they earn.

• Car loan interest relief: Certain vehicle financing costs become deductible, lightening the load for owner-operators and gig workers.

3. Certainty & Competitiveness for American Job Creators

• Business tax stability: Rules around foreign tax credits, base-erosion anti-abuse, and interest deductions get clarified.

• What to watch: If you’ve been hit by IRS audit adjustments to business interest limits, these reforms could ease compliance headaches.

4. Investing in Families, Communities & Small Businesses

• Enhanced credits: Expanded child and dependent care credits, plus new incentives for donations to scholarship-granting organizations.

• 529 & QSBS updates: More favorable treatment for education savings and qualified small business stock, perfect if you’re saving for kids’ college or sequencing an exit strategy.

5. Phasing Out “Inflation Reduction Act” Credits

• Clean vehicle credits sunset: The electric-vehicle and energy-efficiency incentives from the prior administration are being scaled back and phased out.

• Energy exploration boost: Offsetting these cuts, America First energy provisions encourage domestic fuel and mineral development.

6. Guardrails & Reform on Deductions and Credits

• New compliance checks: Stricter Social Security number requirements and documentation rules aim to curb improper claims.

• What to do now: Tighten up record-keeping and filing protocols to avoid any retroactive disallowance.

Beyond Taxes: Health, Debt & Unemployment

• Health tax tweaks: Premium Tax Credit eligibility for Affordable Care Act plans gets smoother reconciliation, reducing year-end surprises for those on Obamacare.

• Debt-limit mechanics: Adjustments to the federal borrowing cap could affect government services and by extension, things like Medicare and Medicaid funding.

• Ending millionaire unemployment payments: A small but symbolic change federal jobless benefits no longer extend to high-income recipients.

What’s Next for You?

This overview barely scratches the surface. In upcoming posts, we’ll unpack each chapter in detail explaining who qualifies, how to claim these benefits (or avoid new pitfalls), and actionable steps you can take right now.

👉 Stay tuned for deep dives into individual provisions.
👉 Subscribe to our newsletter for chapter-by-chapter guides, quick-reference checklists, and timely reminders.
👉 Need personalized advice? Book a complimentary tax strategy session to see exactly how OB3’s changes affect your bottom line.

Together, we’ll turn legislative complexity into clarity and make sure you keep more of what you earn.