How the New ‘Tax Bill’ Impacts Your Small Business Tax Prep in New Jersey

Tax prep season just got more interesting, thanks to the newly passed One Big Beautiful Bill (OBBBA), signed into law on July 4, 2025. Whether you’re filing this year or planning ahead for 2026, your tax prep checklist now needs to include several important updates. 

Here’s information on the new ‘Tax Bill”.

What Is the Big Beautiful Bill (OBBBA)?

• The OBBBA makes permanent many of the 2017 Tax Cuts and Jobs Act provisions—like the seven federal tax brackets and the larger standard deduction.
  
  

• It includes new breaks like a bigger Child Tax Credit ($2,200 per child, indexed to inflation) and a $6,000 senior deduction for those age 65+.
  
  

• For small businesses, it raises the pass-through deduction (from 20% to 23%) and restores 100% immediate expensing, making investments and equipment purchases more tax-efficient.
  
  

Why Small Business Owners in NJ Should Care

Pass-through and expensing boosts:Accelerates write-offs on equipment and improvements, perfect for cash flow and tax savings

SALT deduction cap increase (up to $40,000, phased out above certain income levels): Significant relief for NJ business owners facing high state and local taxes.

Child Tax Credit and senior deductions: Benefits extend to family-run businesses or sole proprietors supporting dependents or retirees

Plus, the bill extends depreciation incentives, like Section 179 bonuses that favor property investments.

Step-by-Step Checklist: Preparing Your Small Business for Tax Season in Light of OBBBA

1. Understand and apply the updated standard and pass-through deductions.
   
   

2. Document any large purchases (equipment, vehicles) to take advantage of 100% immediate expensing.
   
   

3. Review your 2025 SALT deductions carefully—they’ve increased significantly but may phase out at higher income thresholds.
   
   

4. If applicable, update dependent-related benefits (Child Tax Credit) and senior deductions.
   
   

5. Keep an eye on timing—many benefits kick in for tax year 2026+, but some apply to 2025 filings.
   
   

6. Consult your CPA early—changes around expensing, deduction phaseouts, and family tax credits could impact options on business structure, payroll allocations, or retirement strategies.
   
   

The One Big Beautiful Bill Act rewrites the tax playbook for small business owners, especially in high-tax states like NJ. Taking advantage of expenses, enhanced deductions, and cap changes can translate into real financial gain. But the complexity is real and getting a jump on prep makes all the difference.

Reach out to Ciaccia CPA, so we can integrate these changes into your tax prep.