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How the “One Big Beautiful Bill” Could Impact Your Business

07/21/2025
Congress has passed the “One Big Beautiful Bill Act,” a sweeping federal budget bill packed with tax and regulatory changes that will affect a wide range of industries starting in 2025. While major headlines focus on national impacts, business owners need to pay attention to the fine print, because there’s plenty in this bill that could reshape everything from cash flow and capital planning to hiring strategies and operational costs.
 

Key Impacts for All Businesses

No matter what industry you're in, the bill introduces provisions that could improve your financial footing, if you act strategically:
  • 100% Bonus Depreciation is Back: Businesses can fully deduct the cost of qualifying equipment, vehicles, or improvements in the year placed in service. If you’ve been putting off upgrades or expansions, now’s the time to reevaluate.
  • Expanded Interest Deductions: Interest expense limitations are now based on EBITDA instead of EBIT, improving deductions and offering greater flexibility in growth financing.
  • New Incentives for Domestic Investment and R&D: Businesses engaged in U.S.-based manufacturing, production, or innovation could unlock valuable new deductions and credits.
  • Opportunity Zones and Underserved Markets: Enhanced tax benefits for investing in low-income or underserved areas could open up new funding avenues or growth opportunities for the right projects.
  • Labor Market Pressure: Hiring remains competitive across industries. Wage inflation and talent shortages require smarter compensation planning and workforce strategy.
  • Higher Interest Rates & Financing Considerations: With inflation concerns on the horizon, now is the time to evaluate existing financing, secure favorable rates, and prepare for more rigorous loan processes.
  • Ongoing Supply Chain Constraints: Whether you're sourcing equipment or materials, delays and rising costs are still a reality. Businesses that plan ahead and build flexibility into operations will have the edge. 


A Closer Look at Construction and Commercial Real Estate

While many of the bill’s changes apply broadly, construction and real estate firms will feel several industry-specific effects, both good and bad.
 
OPPORTUNITIES:
  • Bonus Depreciation for Capital Improvements: Especially impactful for developers, contractors, and property owners investing in new equipment or facility upgrades.
  • Expanded Low-Income Housing Tax Credit & Opportunity Zones: Real estate developers focused on affordable housing or underserved markets stand to benefit from additional incentives and potential funding sources.
  • Accounting Method Changes for Residential Contractors: More builders now qualify for the completed contract method (CCM), allowing for deferred income recognition, improved cash flow, and simplified reporting, especially for smaller subdivision or multifamily projects.
  • Industrial Real Estate Tailwinds: Incentives for domestic manufacturing may drive demand for logistics centers, warehouses, and flex-space creating new development opportunities.

RISKS:
  • Tariffs Driving Material Costs Up: New and expanded tariffs on steel, aluminum, and critical materials are increasing costs by 15-30%. Builders and developers should review bids and ensure contracts include escalation clauses.
  • Intensifying Skilled Labor Shortages: Already-strained construction labor pools may worsen as demand rises. Competitive compensation and strong workforce planning will be crucial.


Next Steps: What You Should Do Now

  • Evaluate Your Tax Strategy: Make sure you’re set up to take advantage of bonus depreciation, interest deductions, and any applicable credits or incentives.
  • Model “What-If” Scenarios: Prepare for potential cash flow disruptions, cost increases, or delayed payments by building and testing contingency plans.
  • Review Contracts & Bidding Practices: Update terms to reflect volatility in pricing and timelines especially in construction and service-based industries.
  • Get Your Financing in Order: Lock in favorable interest rates now and plan for longer lead times on approvals.
  • Leverage Technology: Use digital tools to track expenses, project profitability, and performance in real time, particularly important for project-based businesses.


In Summary

The “One Big Beautiful Bill” offers a mix of new advantages and challenges. While construction and commercial real estate may see the most immediate impact, all businesses have something to gain, or lose, depending on how they respond.
 
Need help figuring out what this means for your business? Let’s talk. Our team works with business owners, contractors, developers, and commercial real estate companies to create tax-smart, financially sound strategies that turn complexity into opportunity.