A Quick Update on the “One Big Beautiful Bill”
Today could be a turning point for one of the biggest tax packages we’ve seen in a while. The Senate is working to finalize what’s being called the “One Big Beautiful Bill,” and most committees have already released their pieces of the puzzle.
The one we’re still waiting on? The Senate Finance Committee.
This committee is responsible for some of the most complex and closely watched parts of the bill, especially for those of us working in specialty tax. That includes:
R&D Expensing Under Section 174
We’re expecting to see full expensing of R&D costs made permanent, rather than the current five-year correction proposed in the current House version of the bill. This would be a huge long-term relief for companies investing in innovation.
100% Bonus Depreciation
There are strong signals that bonus depreciation could be made permanent. That’s great news for real estate owners and businesses making large capital investments. Cost segregation studies would continue to play a big role in planning.
This one’s a bit of a question mark. The future of the renewable energy incentives from the Inflation Reduction Act is still unclear. Lawmakers have expressed support for providing more certainty for business planning by extending the phase-outs, but nothing official yet.
What About SALT?
The SALT deduction is still being debated. We may see placeholders in the bill for this and other unresolved issues, like Medicaid. Negotiations are ongoing.
Timing Is Tight
We’re expecting the Finance Committee to release its first draft of the bill text later today, but with some issues still being ironed out, not everything will be final.
Here’s the tricky part: the Senate is only in session through Wednesday due to the Juneteenth holiday. After that, they’ll have just five working days the week of June 23–27 to pass the full bill before taking another break for Independence Day.
Why This Matters
If these changes go through, they’ll have a big impact on year-end tax planning. Permanent bonus depreciation and restored R&D expensing would open up new opportunities. On the flip side, any changes to renewable energy credits could shift how businesses approach sustainability-related investments.
We’re keeping close tabs on everything and will continue to update as more information becomes available.
If you want to talk through how these potential changes could affect your clients or your own business, we’re here to help.
