President Trump’s “One Big Beautiful Bill Act,” signed into law on July 4, 2025, introduces several major tax changes with direct implications for CFOs, especially in public companies. The legislation revives full expensing for U.S.-based R&D, allowing companies to deduct costs immediately rather than over five years, a reversal of the 2022 rule. Interest deductibility under Section 163(j) has also been expanded, with depreciation and amortization no longer subtracted from the limit, potentially lowering tax liabilities. “This could reduce the tax burden by increasing your interest deduction,” said Joseph Perry, National Tax Leader at CBIZ. The changes may significantly impact deferred tax assets and require third-quarter adjustments under GAAP and ASC 740. Perry advised, “Any effect related to an enacted law will be included in the period of enactment.”
Additional takeaways include the return of 100% bonus depreciation and enhanced Section 179 expensing, which could stimulate capital spending. Two small-business tax breaks, the 20% pass-through income deduction and Section 1202 stock exclusion, have been made permanent. However, restrictions on executive compensation deductibility under Section 162(m) have tightened, requiring aggregation across controlled groups. The bill also blocks new Employee Retention Credit payments for late 2021 claims filed after January 31, 2024. CFOs are urged to reassess tax positions, balance sheets, and compensation strategies during Q3 to avoid surprises later in the fiscal year.
