Story perspectives

New Tax Bill Boosts Capital Flow, Alters Deductions

9/13/2025

Summary

Story summary

The One Big Beautiful Bill Act (OBBBA) changes the tax framework for specialty finance and capital markets.
It enables immediate expensing and improves interest deductibility, enhancing after-tax cash flow.
The bill promotes capital formation, aiding capital raises and selective mergers and acquisitions.
Key provisions include full R&D expensing, extended bonus depreciation, and stricter meal expense deductions.
Some provisions offer relief, while others pose challenges, especially for firms with workplace perks.

History

Historical Context

The Tax Reform Act of 1986 transformed the U.S. tax landscape by reducing the corporate tax rate to 34% and eliminating numerous deductions, resulting in a 25% increase in corporate investment. Building on this legacy, the One Big Beautiful Bill Act, signed into law on July 4, 2025, introduces immediate expensing and enhanced interest deductibility to further stimulate capital investment and corporate mergers.

1 of 2

Story summary

The One Big Beautiful Bill Act (OBBBA) changes the tax framework for specialty finance and capital markets.
It enables immediate expensing and improves interest deductibility, enhancing after-tax cash flow.
The bill promotes capital formation, aiding capital raises and selective mergers and acquisitions.
Key provisions include full R&D expensing, extended bonus depreciation, and stricter meal expense deductions.
Some provisions offer relief, while others pose challenges, especially for firms with workplace perks.

1 / 2