On July 4th, while most of America was watching fireworks, the tax code was being rewritten.
President Trump signed the One Big Beautiful Bill Act into law. A sweeping piece of legislation that permanently extended the 2017 Tax Cuts and Jobs Act and added a slate of new provisions that will reshape how entrepreneurs are taxed for years to come.
If you haven’t heard about this, you’re not alone. Most business owners are so busy running their companies that major tax legislation flies right past them. Until April that is.. when it’s too late to do anything about it.
That’s the difference between playing offense and playing defense with money. One makes you wealthy. The other makes you tired.
So let’s break down what actually changed, and what it means for you heading into 2026.
The Big Picture: TCJA (Tax Cuts and Jobs Act) Is Now Permanent
Remember the panic about tax rates reverting in 2026? The 37% top bracket jumping back to 39.6%? The standard deduction getting slashed in half?
That cliff is gone.
The OBBBA made the reduced individual tax rates permanent. The seven brackets (10%, 12%, 22%, 24%, 32%, 35%, and 37%) are now locked in. The nearly doubled standard deduction stays. The higher estate and gift tax exemption? Permanent, and actually increased to $15 million per individual starting in 2026.
For entrepreneurs, this means certainty. You can finally plan beyond a one-year horizon without wondering if the rules will change.
The Pass-Through Deduction Is Here to Stay
This is the provision that should have every S-Corp owner, LLC member, and sole proprietor paying attention.
The Section 199A qualified business income deduction (the one that lets you deduct up to 20% of your business income before it hits your personal return) was set to expire. It’s now permanent.
That’s not a small thing. For a business owner earning $500,000 in qualified business income, that’s a potential $100,000 deduction. At a 37% rate, that’s $37,000 in annual tax savings. Every year. Forever.
If you’re not structured to maximize this deduction, you’re leaving real money on the table.
Bonus Depreciation Is Back at 100%
For the last couple of years, bonus depreciation has been phasing down. It was at 80%, then 60%, headed toward zero. The OBBBA reversed course and restored 100% bonus depreciation for qualified property placed in service after January 20, 2025.
What does that mean in plain English? If you buy equipment, vehicles, or other qualifying assets for your business, you can write off the entire cost in year one. Not over five years. Not over seven. Now.
This is how strategic business owners accelerate deductions and control their taxable income.
The government handed you a tool. Use it.
New Deductions You Didn’t Have Before
The OBBBA also introduced temporary provisions that didn’t exist under TCJA:
Tips and overtime income can now be excluded from federal income tax for many workers. A provision that may affect how you structure compensation.
Car loan interest becomes partially deductible for qualifying taxpayers.
Seniors get a bonus deduction. That’s an extra $6,000 standard deduction for those 65 and older through 2028.
These aren’t game-changers for most entrepreneurs, but they’re examples of new levers in the code. And every lever is an opportunity. But only if you know it exists.
The Mindset Shift: From Reactive to Strategic
Here’s the real lesson: the tax code just went through its most significant update since 2017, and most business owners won’t learn about it until their accountant mentions it next spring.
That’s playing checkers. With your eyes closed.
The entrepreneurs who win at this game are the ones who treat the tax code like what it is: a rule book. Not a punishment. Not a mystery. A system with levers, structures, and strategies that favor the informed.
This is why tools like the Accountable Plan matter. While everyone else is hoping their CPA finds a deduction, you could be reimbursing yourself tax-free for your home office, mileage, cell phone, and internet; legally, cleanly, and proactively.
The IRS isn’t hiding these provisions. They’re just not advertising them.
Your Move for 2026
The tax code just got more favorable (and more permanent) for business owners. But permanence doesn’t mean passive. It means you finally have a stable foundation to build a real tax strategy on.
So here’s the question: are you going to let another year go by running on autopilot? Or are you going to sit down, look at your structure, and ask what’s possible?
The tax code isn’t out to get you. It’s a game board. But only the curious and proactive win.
2026 is already on the books.
The question is: are you?