Big Beautiful Bill What?! (BBB) Passed July 4, 2025
On July 4, 2025, Congress enacted landmark legislation—informally called the “Big Beautiful Bill” (BBB)—to modernize the tax code, provide relief to families, and support small business owners. Here’s a straightforward guide on what the BBB does, how it affects you, and how my firm can help you leverage it for the rest of 2025.
1. What the BBB Is and Why It Matters to You
What It Is: The BBB bundles together:
Extensions and expansions of key individual credits (Child & Dependent Care, Earned Income Tax Credit).
Enhanced depreciation rules and bonus depreciation for business assets.
New credits focused on clean energy projects and employee training.
Simplified reporting for pass-through entities (like sole props, partnerships, S corps).
Why It Matters:
Immediate tax savings on personal returns.
Cash-flow advantages by accelerating write‑offs on business purchases.
Opportunities to optimize payroll, sales tax planning, and bookkeeping before year-end.
Simplified compliance, reducing paperwork and audit exposure.
2. Key Takeaways for Individual Clients
Child & Dependent Care Credit: Rate jumps to 35% of qualified expenses (up to $8,000/child) and becomes fully refundable for incomes ≤ $125K.
Earned Income Tax Credit (EITC): Phase‑in rate rises by 5 points for non‑parents; income limits will adjust for inflation starting 2026.
Home Office Deduction: Option for a flat $2.50/sq ft (max 300 sq ft), no need to track utilities or depreciation.
Charitable Deductions: Temporary above‑the‑line deduction extended—bunch gifts in 2025 for a bigger impact.
Action Steps:
Send in your dependent care receipts and update payroll withholdings.
Measure your home office now and share the info so I can claim it correctly on your return.
Plan year‑end charitable gifts; I’ll help you track and time deductions.
3. How Small Businesses & Bookkeeping Clients Benefit
1. 100% Bonus Depreciation
Full write‑off of new or used equipment placed in service by 12/31/25.
2. Clean Energy Investment Tax Credit
10% base + up to 20% for domestic content on solar, wind, or battery systems started after July 4.
3. Workforce Training Credit
Up to $1,500 per employee for qualified training programs you run before year‑end.
4. Pass‑Through Entity Simplification
Optional 15% flat‑rate deduction for sole props, partnerships, and S‑corps instead of detailed expense reports.
Services My Firm Provides:
Bookkeeping & Payroll: Capture asset purchases in real time to optimize depreciation; ensure payroll reporting aligns with credits.
Sales Tax Planning: Review nexus and quarterly returns to incorporate any new exemptions or thresholds.
Fractional Virtual CFO: Cash‑flow modeling to time purchases, payroll, and training so you maximize credits without hurting operations.
Action Steps:
Let’s review planned equipment or software purchases—send me purchase timelines so we can lock in 100% bonus depreciation.
If you’re considering a small solar or EV charging project, we’ll map out the timing to secure the full ITC.
Identify training courses now; I’ll help document costs and file the credit on your quarterlies.
4. Tax Planning Calendar for July–December 2025
Focus Area What to Do Deadline Asset Write‑Offs Place equipment/software in service 12/31/2025 Energy Credits Sign contracts & start work 12/31/2025 Home Office Verify square footage and share details ASAP Charitable Giving Concentrate donations in 2025 12/31/2025 Training Programs Enroll staff & invoice costs 12/31/2025 Sales Tax Returns Confirm exemptions & file Q3/Q4 Quarterly Payroll Adjustments Update withholding & credit tracking With each payroll
Tip: Accurate, timely bookkeeping feeds into every credit and deduction—drop your records into our secure portal regularly.
5. Latest Updates (as of July 10, 2025)
Treasury Notice 2025-XX (July 2): Clarified that used equipment qualifies for 100% bonus depreciation if your business’s first use occurs after July 4.
IRS FAQs (July 8): Confirm home office flat deduction applies to renters just as it does to homeowners.
Sales Tax Advisory: A few states are adjusting small‑vendor thresholds—ask me for a nexus review so you don’t miss any changes.
6. Next Steps: How I Can Help You
Bookkeeping & Payroll Review: I’ll reconcile your ledgers and payroll runs to capture BBB benefits in real time.
Sales Tax Strategy: Update your quarterly filings to incorporate new thresholds or exemptions.
Tax Prep & Planning: We’ll incorporate BBB provisions into your mid‑year projections and 2025 return prep.
Fractional CFO Insights: Use my cash‑flow models and advisory sessions to time purchases and credits without disrupting operations.
Ready to maximize your savings? Reach out to schedule a mid‑year strategy session—let’s make the Big Beautiful Bill work beautifully for your finances!
@sfbialecki @stevenbialecki @stevebialecki @thebookease
#tax #bigbeautifulbill #BBB #bookkeeping #taxpreparer #taxadvisor #businessconsultant #virtualcfo #fractionalCFO