The One Big Beautiful Bill (OBBB) (H.R. 1) is under consideration by the Senate after passing the House on May 22, 2025 by a vote of 215-214. President Donald Trump has set a goal of signing the bill by July 4, 2025. Why is this important to the printing industry? Because within the OBBB are key provisions that will benefit print service providers and boost economic growth.  

The “Big Three” Tax Provisions 

The Tax Cuts and Jobs Act of 2017 (TCJA) enacted several business tax provisions commonly dubbed as the “big three.” They include bonus depreciation, research and experimental expense deductions, and business interest expense deductions. The OBBB seeks to amend these provisions with an aim toward stimulating domestic economic growth.  

Bonus Depreciation 

Under Internal Revenue Code (IRC) Section 168(k), “bonus depreciation” allows for an immediate and full deduction for capital equipment purchases. The Senate version differs from the House Bill in the timing of the provisions. For example, the House bill merely extends the bonus depreciation provision through 2029. Meanwhile, the Senate bill would permanently extend the depreciation deduction and allow for 100% expensing in the year the expenses were incurred. Making the bonus depreciation permanent would boost domestic production and investment. 

Research & Development Expensing 

Another move has been aimed at stimulating investment, too. The Senate bill permanently reinstates the deduction of domestic research and development (R&D) expenses in the year they were incurred. The current legislation requires taxpayers to capitalize and amortize R&D expenses over a five-year period. The House version would temporarily allow for the immediate deduction of R&D expenditures until 2029. Meanwhile, the Senate version makes the immediate deduction permanent. Restoring immediate R&D expensing would reduce the costs of groundbreaking research and support innovation across our sector. 

Interest Deduction 

The business interest deduction under IRC §163(j) makes up the last member of the “big three.” The Senate and House bills provide a more favorable calculation of the interest deduction by adjusting the calculation to use earnings before interest, taxes, depreciation, and amortization (EBITDA) rather than earnings before interest and taxes (EBIT). Broadening the interest deduction will make it easier to purchase equipment and will stimulate economic growth. 

Main Street 

Although not part of the “big three,” another important provision under IRC §199A would make the small business tax deduction on qualified business income permanent. While the House version would have increased the deduction from 20% to 23%, the Senate version maintains the 20% tax deduction for small and medium-sized businesses, including those organized as S corporations. This provision would free up capital for businesses to invest and create jobs, as well.

The Senate draft reconciliation bill also includes provisions that would permanently maintain the 37% individual tax rate as the top marginal rate, which is relevant for businesses structured as pass-through entities (i.e., partnerships and S corporations) where income is taxed at the individual level. 

New Provision

The bill creates a new deduction allowing companies to immediately expense the cost of new factories and improvements to existing facilities. This is a significant change from current law, which requires depreciation over 39 years. The legislation increases the maximum Section 179 expense deduction, aimed at helping small businesses immediately deduct the cost of certain property.

Where Does the Bill Go From Here?

The $4.2 trillion package does not yet have the support it needs to pass the Senate. Fiscal hawks seeking to lower the bill’s total price tag are at odds, too. Republicans are worried about cuts to Medicaid health coverage for their constituents, phase-outs to green energy incentives, and the state-and-local tax (SALT) deduction. These policy issues will need to be resolved before the bill can pass. 

The Senate parliamentarian recently ruled that several key provisions in the bill violate the Byrd Rule. Therefore, they must be removed for the bill to proceed under the budget reconciliation process. This allows passage with a simple majority vote. 

The Byrd Rule

The Byrd Rule—named after the late Senator Robert Byrd—governs the reconciliation process by prohibiting the inclusion of provisions deemed “extraneous” to federal budget matters. Its purpose is to ensure that reconciliation, which enables legislation to bypass the filibuster, is reserved strictly for budget-related measures and not used to advance unrelated policy initiatives.  

On June 26, Trump administration officials downplayed the Senate parliamentarian’s rulings. These were cast as a minor setback that lawmakers were already working to remedy. In addition, it’s unclear how the changes required by the parliamentarian will affect the July 4th deadline. If the bill passes the Senate, it will go back to the House to ratify before it goes to the president to sign. 

PRINTING United remains hopeful that a final bill will include these provisions that are favorable to members and the industry.  

About the author: In this article, Stephanie Buka, government affairs manager, PRINTING United Alliance, provides an update on the Senate reconciliation bill. More information can be found at Business Excellence-Legislation or reach out to Buka should you have additional questions specific to how these issues may affect your business: [email protected].