Permanent Tax Breaks for Business Owners: 3 Things to Do with Them Now
09/08/2025
If you’re a business owner, you are likely used to experiencing uncertainty from time to time, especially when it relates to taxes. In the past, tax deductions would appear, then disappear. Rules would phase out or change just as you were getting used to them. That instability can make it difficult to plan, especially for those trying to run a business, take care of their team members, provide for family, and prepare for retirement all at once.
With the passage of the One Big Beautiful Bill in July 2025, several cornerstone deductions have been made permanent. For business owners, this is more than just good news: it’s a chance to plan with confidence, knowing the rules you rely on today will be there tomorrow.
Here are three things you can do with these permanent tax breaks starting now:
1. Write off major purchases immediately
Big investments in equipment or improvements don’t have to weigh on your books for years. Thanks to permanent Section 179 expensing, you can now deduct up to $2.5 million the year you buy qualifying assets. The phase-out doesn’t begin until $4 million in purchases, which gives plenty of room for closely held businesses to take advantage.
Example: A farmer who buys a new $500,000 combine this year can write off the entire purchase in year one, instead of stretching deductions out. That leaves more working capital available for land improvements, payroll, or additional growth.
What this means for you: If you’ve been putting off upgrades, this is your chance to invest in your business while still helping protect cash flow.
2. Accelerate growth with bonus depreciation
On top of Section 179, 100% bonus depreciation is back and here to stay. That means you can fully expense the cost of qualifying assets the year you place them in service, rather than depreciating them slowly over time.
Example: A family-owned manufacturing company that spends $1 million on new equipment this year can deduct the entire amount in 2025. Those tax savings could free up funds to hire additional staff or expand into a new market.
What this means for you: This isn’t just an accounting change. Immediate write-offs mean you can reinvest savings into the next opportunity faster, whether that’s hiring, expansion, or strengthening your balance sheet.
3. Deduct up to 20% of qualified income every year—permanently
If your business is structured as a sole proprietorship, partnership, S-corp, or LLC, you probably already know the value of the Qualified Business Income (QBI) deduction. It allows you to deduct up to 20% of qualified income. The difference now? It’s permanent.
Starting in 2026, a $400 minimum deduction kicks in for smaller operators, and expanded phase-out ranges will allow more business owners to benefit.
Example: An S-corp owner earning $250,000 in qualified business income could see a $50,000 deduction from taxable income. Over the next decade, that may add up to significant potential tax savings.
What this means for you: Whether your income is modest or substantial, the QBI deduction is designed to help you keep more of what you earn, year after year.
What to Do Next
Permanent deductions don’t guarantee permanent savings. Without a plan, it’s still easy to miss opportunities or pay more than you should over time.
That’s where we come in. At Kaup’s Financial, we integrate deductions like these into your larger wealth strategy, so every dollar has a purpose. We connect tax management with retirement income planning, smart investment strategies, estate and legacy planning, and protection planning to build a comprehensive blueprint that supports your goals now and for the future.
Want to see how these permanent deductions could strengthen your business and family plan? We’re here to help. Call us today at 402-924-3607 or visit kaups.com to schedule your free consultation.
With the passage of the One Big Beautiful Bill in July 2025, several cornerstone deductions have been made permanent. For business owners, this is more than just good news: it’s a chance to plan with confidence, knowing the rules you rely on today will be there tomorrow.
Here are three things you can do with these permanent tax breaks starting now:
1. Write off major purchases immediately
Big investments in equipment or improvements don’t have to weigh on your books for years. Thanks to permanent Section 179 expensing, you can now deduct up to $2.5 million the year you buy qualifying assets. The phase-out doesn’t begin until $4 million in purchases, which gives plenty of room for closely held businesses to take advantage.
Example: A farmer who buys a new $500,000 combine this year can write off the entire purchase in year one, instead of stretching deductions out. That leaves more working capital available for land improvements, payroll, or additional growth.
What this means for you: If you’ve been putting off upgrades, this is your chance to invest in your business while still helping protect cash flow.
2. Accelerate growth with bonus depreciation
On top of Section 179, 100% bonus depreciation is back and here to stay. That means you can fully expense the cost of qualifying assets the year you place them in service, rather than depreciating them slowly over time.
Example: A family-owned manufacturing company that spends $1 million on new equipment this year can deduct the entire amount in 2025. Those tax savings could free up funds to hire additional staff or expand into a new market.
What this means for you: This isn’t just an accounting change. Immediate write-offs mean you can reinvest savings into the next opportunity faster, whether that’s hiring, expansion, or strengthening your balance sheet.
3. Deduct up to 20% of qualified income every year—permanently
If your business is structured as a sole proprietorship, partnership, S-corp, or LLC, you probably already know the value of the Qualified Business Income (QBI) deduction. It allows you to deduct up to 20% of qualified income. The difference now? It’s permanent.
Starting in 2026, a $400 minimum deduction kicks in for smaller operators, and expanded phase-out ranges will allow more business owners to benefit.
Example: An S-corp owner earning $250,000 in qualified business income could see a $50,000 deduction from taxable income. Over the next decade, that may add up to significant potential tax savings.
What this means for you: Whether your income is modest or substantial, the QBI deduction is designed to help you keep more of what you earn, year after year.
What to Do Next
Permanent deductions don’t guarantee permanent savings. Without a plan, it’s still easy to miss opportunities or pay more than you should over time.
That’s where we come in. At Kaup’s Financial, we integrate deductions like these into your larger wealth strategy, so every dollar has a purpose. We connect tax management with retirement income planning, smart investment strategies, estate and legacy planning, and protection planning to build a comprehensive blueprint that supports your goals now and for the future.
Want to see how these permanent deductions could strengthen your business and family plan? We’re here to help. Call us today at 402-924-3607 or visit kaups.com to schedule your free consultation.