What The Big Beautiful Bill Means For You and Your Business

On July 4, 2025, President Trump signed the One Big Beautiful Bill Act (BBB) into law. The sweeping legislation fulfills several of his campaign promises, most notably extending many of the tax breaks and deductions originally introduced under the 2017 Tax Cuts and Jobs Act (TCJA). Some of those cuts had already expired, while others were set to sunset at the end of this year. This bill reshapes U.S. tax policy, government spending, and market conditions in ways that could ripple through businesses and investment portfolios alike. 

What’s in the Big Beautiful Bill?

At its core, the BBB reallocates government spending. Funding is being pulled from programs such as Medicaid, SNAP, and green energy incentives, redirecting this money into extending tax cuts, expanding border security, and strengthening immigration enforcement. 

On the business side, the bill continues a variety of corporate-friendly provisions, but it comes at a cost. Analysts at the Congressional Budget Office estimate that the changes could increase the national debt by as much as $3.4 trillion over the next decade. That added debt could put pressure on interest rates, making it more expensive for companies and individuals to borrow.

Economists at J.P. Morgan also posit that the corporate lift from the tax cuts could fuel inflation, leading to higher yields on U.S. Treasury bonds. If this happens, investors may prefer bonds over equities, shifting the balance of the market and adding volatility.

How Will the Big Beautiful Bill Affect Businesses?

The effects of the BBB will look different depending on a business’s industry, size, and structure:

• Green Energy: With the elimination of the clean energy production credit and limits on related incentives, this sector is likely to lose momentum.
• Electric Vehicles (EVs): The termination of EV tax credits means higher costs for consumers, which may slow sales.
• Nonprofits: The end of the Greenhouse Gas Reduction Fund could shrink available resources for nonprofits addressing environmental challenges.
• Oil and Gas: Lower royalty rates provide a significant advantage to producers in this sector.
• Manufacturing: This sector benefits from restored provisions such as the ability to deduct R&D expenses. Smaller manufacturers (with receipts under $31 million) can even retroactively deduct expenses back to 2021.

Small businesses also stand to gain in some areas. The BBB makes the Qualified Business Income (QBI) deduction permanent and allows business owners to write off 100% of eligible new property, creating new opportunities for expansion and reinvestment.

The Big Beautiful Bill’s Indirect Effects on Businesses

The bill’s longer-term effects may be more complicated than the near-term tax relief. Rising national debt and government borrowing could push Treasury yields higher, making bonds more attractive compared to stocks. This shift could cool investor sentiment toward equities and add unpredictability to the markets.

Higher borrowing costs could weigh on both businesses and households, slowing growth in sectors that might otherwise benefit from tax cuts. And while not formally part of the BBB, ongoing tariffs may compound inflation pressure by raising costs for businesses to obtain goods and materials.

What Should Business Owners Do After The Law’s Passing?

For now, it’s too early to predict exactly how the economy will adjust in the wake of the BBB, but the changes are significant enough that business owners and investors should prepare to adapt. 

• Monitor industry shifts carefully. Some sectors will thrive, and others will tighten. Align your portfolio accordingly, and be sure to diversify your investments to cushion any volatility.
• Plan for higher borrowing costs. If your business depends on loans, now is the time to consider refinancing or locking in rates.
• Work with a trusted advisor. Navigating new tax laws, interest rates, and market shifts requires a strategy tailored to your unique situation. An advisor can help you maximize tax benefits while keeping your long-term goals in focus. At PFW Advisors, we help clients evaluate these shifting conditions and adjust strategies with both clarity and confidence. 

The Big Beautiful Bill extends tax cuts and creates opportunities for certain industries and businesses, but it also raises questions about debt, inflation, and market stability. Whether you’re a small business owner, an executive, or an investor, the most important move you can make right now is staying proactive. Be alert to legislation changes, be aware of economic news, and be adaptable to the ever-changing market.

Investment advice offered through PFW Advisors, LLC, a SEC-Registered Investment Adviser. Registration does not imply a certain level of skill or training. Any media logos and/or trademarks contained herein are the property of their respective owners and no endorsement by PFW Advisors, LLC or its representatives is stated or implied. The information contained herein is for educational purposes only. It is not intended to provide, and should not be relied on for, any tax, legal or investment advice. You are advised to seek the advice of a qualified professional before making any decision based on any specific information contained herein. The particular tax consequences of any investment or strategy will depend on your specific tax situation.

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