U.S. Chamber’s guide helps small businesses navigate new tax law

The U.S. Chamber of Commerce has released a new Small Business Guide to the New Tax Law to help entrepreneurs navigate provisions in the recently enacted One Big Beautiful Bill Act. The legislation, a signature achievement of President Donald Trump’s administration, includes multiple tax measures aimed at supporting small business growth and operations.

The guide provides a concise, one-page overview of the law’s most impactful provisions and is available online for free. Small business owners can start taking advantage of these tax breaks immediately for expenses dating back to January 20, 2025.

Key provisions highlighted in the guide include:

1. Permanent 20% qualified business income deduction – Sole proprietors, partners, and S corporation shareholders can deduct 20% of qualified business income on federal tax returns, with an inflation-adjusted minimum deduction of $400.
2. 100% deduction for research and experimental expenses – Businesses with domestic R&E spending, especially those with annual gross receipts of $31 million or less, can deduct 100% of qualifying expenses, retroactive to 2022–2024 if eligible.
3. Increased section 179 expensing – Small businesses can now immediately deduct up to $2.5 million for new equipment or software purchases, with a phase-out threshold of $4 million.
4. Enhanced qualified small business stock exclusion – Investors in qualifying small C corporations can exclude more capital gains from stock held for more than five years.
5. Expanded employer-provided child care credit – Businesses providing employee child care can claim credits up to $500,000 (or $600,000 for small businesses) and a larger percentage of expenses, with options to pool resources or use third-party providers.

“This practical tool underscores the Chamber’s ongoing commitment to supporting small businesses by providing timely and relevant resources,” the Washington Retail Federation said.

The guide also offers a quick checklist to help business owners confirm eligibility, maximize deductions, and coordinate with tax professionals for optimal tax planning. Business owners can access the full guide here.