How This New Act Will Impact Your Wallet, Your Business, and Your Family
The One Big Beautiful Bill (OB3) Act has officially passed, and it’s already sending ripples through households and boardrooms. Whether you’re a local café owner, a freelance designer, or a parent juggling multiple roles, this new legislation touches many aspects of daily life. Packed with tax reforms, business incentives, and personal finance updates, the OB3 impacts how we earn, spend, save, and invest.
What is the initial impact for business owners?
For business owners, one of the most talked-about changes is stability in the corporate tax rate. That’s right—the 21% rate will stay locked in place, and the looming increase previously anticipated for 2026? It’s off the table. Alongside this relief, the OB3 also introduces fresh deductions for tip income, overtime pay, and even auto loan interest. These updates open the door to meaningful savings in areas many businesses never thought to optimize before.
One of the most exciting features for entrepreneurs is the improved bonus depreciation rules. Businesses can now write off large purchases—think delivery vans, kitchen equipment, office tech—more quickly, freeing up cash flow for expansion or hiring. And with the revived Opportunity Zones, companies now have a clear path to invest in underserved communities, growing their footprint while contributing to local development.
Businesses will need to adjust their payroll systems because tip and overtime deductions now require separate reporting. Not to mention, apps like Venmo and PayPal have updated transaction thresholds for business use, meaning your digital accounting may need a tune-up. More on this to come for many who may be a teacher during the day, but a freelance photographer on weekend gigs.
What’s the impact on individuals and families?
The OB3 lifts the standard deduction significantly—$15,750 for single filers and $31,500 for joint—bringing more room to breathe for households across the income spectrum. Families also catch a break with a higher Child Tax Credit, now set at $2,200 per child. If you’re earning hourly wages or working in hospitality, your tip and overtime income might now go untaxed, padding your take-home pay.
While the OB3 offers plenty to celebrate, it also raises important questions. In our next piece, we’ll explore its impact on high-income earners, highlight key considerations for business owners, and clarify common misunderstandings around Medicare, Medicaid, and other essential provisions.
If reading all this makes your head spin, you’re not alone—and that’s where Hemingway & Buchanan, CPA steps in. We stay sharp on every legislative update so you can make informed decisions without navigating tax jargon solo. If you are considering mapping out growth strategies for your business or looking to maximize your family’s deductions, we’re here to translate the OB3 into real-world results. Watch out for our upcoming article on the pros and cons of the OB3.