Here’s what employers need to know about the Big Beautiful Bill

On July 4, 2025, President Trump signed into law a nearly 900-page bill that includes several provisions that will affect private-sector employers, including increased tax deductions, changes to Medicare eligibility requirements, and increased challenges to immigration compliance.

Bonus depreciation and IRC Section 179 expense limit

The new bill—formally entitled, “An Act to provide for the reconciliation pursuant to title II of H. Con. Res. 14,” but commonly referred to as the One Big Beautiful Bill Act (OBBBA)—reforms the United States’ current tax policies, moves away from clean energy incentives, and restricts eligibility for SNAP and Medicaid recipients.

Additionally, the OBBBA revived a portion of the Tax Cuts and Jobs Act (TCJA) of 2017. The TCJA temporarily provided 100% bonus depreciation of certain qualifying assets through 2022, at which point the bonus amount began falling by 20% each year until it was supposed to have phased out entirely at the end of 2026. The OBBBA reinstated the 100% bonus depreciation of assets that are acquired and placed in service after January 19, 2025. The OBBBA also increased the expense limit for Section 179 property to $2,500,000 with a $4,000,000 phaseout for properties placed into service after December 31, 2024.

“No tax” on tips and overtime