HOW OBBB DRIVES GROWTH AND INNOVATION

Building a business is hard. But complicated tax codes, mountains of red tape, and economic uncertainty can make the American Dream of starting a business feel out of reach.

That’s where the One Big Beautiful Bill comes in.

It restores confidence to businesses large and small, giving them the tools to invest, grow, and hire.

Incentivizing research and development investment

For years, businesses were forced to “amortize” research and development costs — spreading them out over five, 10, or even 15 years. That meant higher up-front tax bills and weaker incentives to innovate.

That changed when the 2017 Tax Cuts and Jobs Act allowed businesses to deduct those costs in the same year they are incurred.

But this tax provision was scheduled to expire at the end of the year, and the impending expiration made businesses hold off on R&D spending.

The OBBB makes this huge tax advantage permanent, permanently restoring immediate expensing for R&D costs.

This provides needed certainty and unleashes American innovation.

Even better, this change can be applied retroactively to expenses dating back to 2022, freeing up cash for businesses that took the hit in prior years. And because the law applies only to domestic R&D, it gives companies one more reason to invest here in America.

The result? Lower research and development costs, and more incentives to hire more people and invest in long-term growth.

Incentivizing infrastructure growth

The OBBB also supercharges capital investment by making the TCJA’s bonus depreciation permanent.

With bonus depreciation, companies can write off the entire investment in year one, rather than over the span of decades.

That means a manufacturer that purchases a $10,000 machine can take the full deduction immediately.

The tax savings improve cash flow, making it easier to expand production, hire workers, and grow.

This is especially beneficial for small businesses, which typically lack the capital to invest as often as large corporations.

One small business owner’s experience

“For years, we fought through red tape, high taxes, and rising costs. … The One Big Beautiful Bill is finally giving small businesses a fair chance,” says Vicki Harry, a small business owner from North Carolina. “I’m building a new store. And because of this bill, I’ll be able to write off every penny I spend on new equipment. That means I can invest now, without being in debt later.”

The economic impact

These provisions are estimated to result in serious economic growth.

• GDP growth: $112 billion
• Jobs: Roughly 73,000 full-time jobs created
• Wages: $40 billion in wage growth nationwide
• Capital investment: Long-run increase of about 10%, or about $5 trillion in additional investment

In other words, these aren’t just tax tweaks — they’re policies with measurable, positive impacts on growth, jobs, and take-home pay.

Additionally, analysts project $148 billion in savings across more than 350 companies in the S&P 500.

When companies of this scale plan for billions in savings, it means greater capacity for innovation, hiring, and expansion — rippling across the economy.

Bottom line

The OBBB guarantees businesses permanent tax relief for R&D and capital investment. That certainty allows entrepreneurs and corporations to move forward confidently, fueling innovation, jobs, and stronger wages.

Here’s where you come in.

The One Big Beautiful Bill is already unlocking growth, innovation, and opportunity for American workers and small businesses. But lasting change only happens when citizens like you speak up.

• Thank your member of Congress if they voted for this massive upgrade to the American economy. Let them know their support is fueling jobs, wage growth, and innovation.
• Express your disappointment if your member of Congress didn’t vote for prosperity. Your voice reminds them that entrepreneurs and workers are paying attention.

Learn more about the OBBB’s tax credits and how they can benefit businesses in your community. Share this knowledge with friends, colleagues, and local business owners.