The One Big Beautiful Bill Act: What business owners and operators need to know

On July 4, 2025, the One Big Beautiful Bill Act (OBBBA)‡ was signed into law by President Donald Trump. The sweeping piece of legislation included an array of provisions that impact both individuals and businesses. If you're a Colorado business owner or leader, it's important to understand what these changes mean for you.

Tax considerations

For many businesses, the OBBBA changes how certain expenses are taxed. Specific areas that have changed tax codes include:

• Gift and estate tax provisions
• Research and development expenses
• Bonus depreciation
• Qualified small business stock gain exclusion
• Opportunity zones

The OBBA business tax changes aren't just limited to companies - they can impact individuals who are passing along a company or having one passed along to them, depending on how the business transfer is structured.

Understanding the implications of these tax changes can not only help businesses avoid tax pitfalls, but also potentially save money on their annual tax bill. Connect with your tax professional for specific information and opportunities.

Industry-specific business considerations

The OBBBA impacts some industries more than others when it comes to new or adjusted regulations. Businesses involved with renewable energy projects will need to navigate new rules, particularly those involving:

• Accelerated deadlines for solar energy project construction or service
• More stringent domestic content requirements
• Energy storage projects and non-intermittent renewable energy sources exemptions

These changes could have an impact on equipment costs and other factors that impact your company's financial well-being, so it's critical to understand and comply with laws included in the OBBBA. Work closely with your financial advisors to ensure you're abiding by all rules, both new and old.

Business considerations and impacts looking ahead

Regardless of whether your business is directly impacted by the OBBBA, you should take the new legislation as an opportunity to connect with your bank about considerations that are always relevant for your company, including your:

• Payables strategy: A deliberate payables strategy helps increase operational efficiencies and can benefit your business's bottom line. Specific considerations include electronic payment and automated payables systems.
• Cash flow strategy: A number of factors can affect cash flow, from fewer sales or unanticipated growth, to rising interest rates and inflation. Take stock of your liquidity and consider adapting your approach to managing cash.
• Budget: A solid business budget is the foundation of any company's operations and is even more important when regulatory changes are involved. Remember that a budget is not a "set it and forget it" type of plan - it must be regularly re-evaluated.
• Business exit strategy: A well thought out business exit plan can help maximize your company's sale proceeds and prepare you personally for a major life transition. Be sure you've plotted out your timeline and identified milestones that must be met at each step along the way.
• Approach to preventing fraud: Fraud is a key consideration for all companies and is becoming more complicated, especially in today's ever-evolving environment. Take proactive steps to understand where you may be vulnerable and put systems into place that can help prevent fraud or mitigate it if it happens.

High earner impacts from OBBBA

The OBBA includes several provisions that can impact your household's bottom line. Specific changes include those made to:

• Individual tax rates
• State and Local Tax (SALT) caps
• Senior tax deductions
• Estate tax exemptions
• Charitable deduction allowances
• Education and child tax credits
• Vehicle taxes

The OBBBA is a reminder that managing a business and your personal finances involve many moving parts, so it's important to work with a trusted financial expert to stay on top of them. If you have questions about how the bill impacts your financial strategy, visit the UMB Colorado website to connect with the team.

If you are interested in learning more about how UMB can help your business and your financial future, visit our website.

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