One Big Beautiful Bill Act - How does it impact your business?

The American political environment is fast paced and ever changing. Don't worry, we have done the leg work and will ensure you are up to date with the latest provisions and how they impact your business.

Understanding The One Big Beautiful Bill Act

The One Big Beautiful Bill Act is a large federal tax and economic package that extends or modifies many provisions from the Tax Cuts and Jobs Act (TCJA), including changes to individual tax brackets, business deductions, and employer-related benefits. Most of its major provisions take effect beginning January 1, 2025, with some items phased in or extended over the following tax years.

Which of its provisions impact Law Firms and their Tax Planning?

• Pass-through business deductions preserved — proposals to deny the deduction for “specified service businesses” (including law firms) were removed, so firms keep access to key pass-through tax benefits.

• Expanded business expensing and depreciation rules — higher limits for Section 179 expensing and bonus depreciation can reduce taxable income for firms investing in equipment, software, or office improvements.

• Changes to employer-provided benefits — updates to credits for paid family leave, dependent-care benefits, and other payroll-related items affect how law firms structure compensation and take employer tax credits.

• Individual tax rate and deduction changes — partners in pass-through firms may see different personal tax liabilities due to bracket adjustments, standard-deduction changes, and expanded credits.

• Administrative and compliance updates — payroll tax adjustments, benefit-plan updates, and altered deduction thresholds require law firms to update tax planning and HR/payroll systems.