A: The One Big Beautiful Bill Act, signed into law on July 4, 2025, is a sweeping, nearly 900-page piece of legislation that touches on everything from taxes and health care to energy policy. It makes many provisions from the 2017 Tax Cuts and Jobs Act permanent and introduces new tax rules—some temporary, some permanent—that will impact both individuals and businesses. While the goal was simplification and economic growth, the reality is that the law is complex, and its impact will vary depending on your situation.

A: Bonus depreciation allows businesses to write off the full cost of certain equipment or property in the year they buy it, instead of spreading out the deduction over time. By making this permanent, the OB3 Act gives business owners a big incentive to invest in things like machinery, equipment, technology, or other assets. The 100% bonus depreciation is for property acquired and placed in service on or after January 19, 2025. It’s a way to reduce taxes while growing your business.

A: The law raises the limit on how much businesses can deduct right away for research and development if that work is done in the U.S., which helps with cash flow. In contrast, expenditures on R&D that is conducted outside the U.S. must still be deducted over 15 years. This encourages businesses to invest in new ideas and products while benefiting from tax savings sooner. For example, paying engineers, chemists, or software developers who work on new products or process improvements in the U.S. can now be an immediate deduction.

A: Yes, the OB3 Act increases the amount businesses can expense to $2.5 million per year. This includes things like office furniture, technology, supplies, business vehicles and other tangible items. Whether you’re replacing outdated equipment or expanding operations, Section 179 helps make it more financially viable to reinvest in your business right away.

A: With so many new rules—and some taking effect at different times—it’s smart to get ahead of the changes and to build them into your business plans. Whether you’re considering making a big equipment purchase, investing in R&D, or just want to brainstorm about how these new rules can benefit your business, we can help. We have technical experts on staff who read the legislation and provide direction on how to make the most of the opportunities in the new tax laws. We can help you sort through the details and figure out what works best for your situation. Connect with us at 517.323.7500 or at manercpa.com.

Kevin Todd, CPA, EA, USTCP, Senior Manager

Kevin joined Maner Costerisan in 2022 and is a senior manager in the Tax department. Kevin’s responsibilities include tax compliance in reviewing for-profit business returns, individual returns, as well as tax planning. He also provides support for federal and state tax controversy work.

Prior to Maner, Kevin owned a practice in southeast Michigan. His practice focused on representing taxpayers to resolve federal and state tax issues as well as tax compliance for a range of businesses and individuals, including US expatriates and tax residents. Kevin also has previous experience in controller-level positions in retail, healthcare services, property management and other roles such as database systems design and administration.

Kevin’s undergrad was in accounting information systems, and he was able to tie his technical knowledge and experience into financial services. After graduation, Kevin discovered that he enjoyed tax work and working with clients to ensure they were well-informed and understood how their choices impacted their tax situations.

A graduate of Eastern Michigan University with a Bachelor of Business Administration and a Master of Science in Accounting, Kevin resides in Fowlerville, Michigan, with his partner, Heather, and their cat, Ava. Outside of work, Kevin enjoys reading, creative writing and playing tabletop games.

I’m most proud of my admission to the US Tax Court. There are approximately 300 accountants with this privilege and to my knowledge, I’m the only one in Michigan. I am a lifelong student and I’m constantly striving for that next level of knowledge, both professionally and personally.