Business and International Tax Changes in the Big, Beautiful Tax Bill

The Big, Beautiful Tax Bill is now law—and it brings big changes for businesses of all sizes. Whether you own a small shop or manage a large company, here’s what you need to know.

For U.S. Businesses

1. Big Tax Breaks for R&D and Equipment

Businesses can now immediately deduct the full cost of U.S.-based research and development (R&D) and short-term equipment purchases. This makes it easier to invest in innovation and growth.

2. 100% Write-Offs for Buildings (Temporarily)

From 2025 to 2029, you can also fully write off the cost of certain buildings if construction starts within that window and finishes by 2031.

3. Permanent Tax Break for Pass-Through Businesses

If you own a pass-through business (like an LLC or S-corp), the 20% deduction on qualified business income is now permanent—with a few extra benefits for smaller businesses.

4. Less Help for Corporate Donations

Corporations will now only get a tax break on charitable donations above 1% of their income, making giving slightly less tax-friendly.

5. Big Changes to Energy Tax Credits

Some green energy tax breaks are going away—especially for clean electricity. But credits for clean fuel are sticking around until 2030. The bill also adds new rules if foreign companies are involved in your project.

Other Business Changes

• Interest you pay on business loans will now be more limited.

• Some oil & gas drilling costs must now be reported differently.

• More industries (like hydrogen, nuclear, and geothermal) will qualify for certain clean energy credits.

For International Business

The bill also renames and changes key international tax rules:

• GILTI is now called Net CFC Tested Income, with a top tax rate of 12.6%–14%.

• FDII is now Foreign-Derived Deduction Eligible Income (FDDEI), taxed at 14%.

• The BEAT tax (which stops companies from dodging taxes with foreign payments) is going up to 10.5%.

In short, the bill offers big savings for U.S.-based investment, adds new rules for energy and foreign activity, and gives business owners more clarity moving forward.