Tax planning and policy
The recently enacted One Big Beautiful Bill Act (2025) has shifted some timelines on tax policies, and our expert highlights some provisions that New Hampshire business owners should notice.
Tax planning and policy
Tax laws are shifting again, and business owners need to be proactive to maximize benefits and avoid surprises. The recently enacted One Big Beautiful Bill Act (2025) has shifted some timelines on tax policies, and our expert highlights some provisions that New Hampshire business owners should notice.
Panelist: Dana R. Bull, CPA, MST, Vice President of Tax Services at Mason + Rich, masonrich.com
Q: What regulations should business owners be aware of as it relates to tax planning for 2025 and 2026?
A: The current administration recently passed the One Big Beautiful Bill Act on July 4, 2025. In addition to making permanent many provisions originally set to expire from the Tax Cuts and Jobs Act of 2018, the Act also introduces changes that affect deductible expenses and business credits. Here are three changes to take note of.
1) Increased Deductions for Property Purchases
Businesses will benefit from expanded deductions for qualifying property acquired in 2025 and future years, such as:
Bonus Depreciation: A 100% bonus depreciation deduction is available for qualified property acquired and placed in service after January 19, 2025. For assets placed in service between January 1 and January 19, 2025, the rate is reduced to 40%.
Section 179 Expensing: The Section 179 deduction limit increases from $1,250,000 in 2024 to $2,500,000 for 2025 and beyond, with future amounts indexed for inflation. Unlike bonus depreciation, these deductions are typically limited to a business’s net income.
State Consideration: New Hampshire does not allow bonus depreciation and caps Section 179 expensing at $500,000.
2) Research and Experimentation (R&E) Costs
The Act also brings favorable changes for research-based businesses. Beginning in 2025, R&E costs can once again be fully deducted in the year incurred. This reverses the prior requirement (effective 2022–2024) that R&E costs be capitalized and amortized over five years. Eligible small business taxpayers may amend prior-year returns to claim the full deduction for R&E costs for tax returns filed for 2022, 2023 and 2024.
3) Changes to Clean Energy Incentives
Not all provisions were taxpayer-friendly. The Act accelerates the phase-out of certain clean energy credits. The Qualified Commercial Clean Vehicle Credit is now set to expire on September 30, 2025 (previously December 31, 2032). Businesses planning to claim this credit must ensure qualifying vehicles are purchased and placed in service by that date.
Q: What are the key takeaways businesses should consider with these tax law changes?
A: Businesses should review their capital investment and research and experimentation (R&E) strategies in light of the new provisions, while also noting the shortened timelines for clean energy incentives. State-specific differences, such as New Hampshire’s unique rules, must be factored into planning. There are additional provisions not addressed here due to space constraints. Because the legislation was enacted quickly, the Treasury Department and IRS are still in the process of issuing detailed guidance on many provisions. As always, consult your trusted tax advisor regarding specific questions or planning opportunities. Mason + Rich is sharing detailed updates on key changes from the Act. Visit our blog at masonrich.com/blog or follow us on LinkedIn for the latest insights.
