On March 26, 2026, AABANY’s Solo & Small Firm Committee and Tax Committee co-sponsored the webinar “Navigating the New OBBBA Landscape.” This presentation arrived at a critical time as the One Big Beautiful Bill Act was signed into law on July 4, 2025, with some provisions taking retroactive effect going back to January 1, 2025.
Parag P. Patel, Co-Chair of the Tax Committee, led the session by providing a comprehensive update on how solo and small law firms can optimize their financial affairs. He emphasized that the new law offers various ways for small business owners to minimize their liabilities if they understand the specific requirements and limitations of the Act.
Several major changes affect individual taxpayers under the OBBBA through the year 2028. The State and Local Tax deduction cap has been significantly increased to $40,000, which offers substantial relief to those living in high-tax jurisdictions. Seniors who are at least 65 years old are now eligible for a $6,000 deduction, provided their income falls within the established limits. The Act also introduces new deductions for reported tips and overtime pay to assist service and hourly workers. Furthermore, individuals may now deduct interest on car loans up to $10,000 annually for vehicles that were assembled in the United States.
The legislation provides permanent benefits designed to stimulate business growth and investment for law firms and other small enterprises. Bonus depreciation is now permanently set at 100% for qualified property acquired after early 2025. The Section 179 expensing limit has risen to $2,500,000, and the phaseout threshold has been adjusted to $4,000,000 to account for inflation. Businesses may once again deduct domestic research and development expenses permanently, and some small businesses can even apply this change retroactively to 2022. Additionally, the calculation for business interest expense limits has been restored to align with EBITDA standards.
While these updates offer many advantages, taxpayers must be aware of the income-based phase-outs that could limit their total deductions. Many of the individual tax benefits are scheduled to revert to previous levels by 2030, making long-term planning essential for legal professionals.
AABANY continues to support its members by translating complex legislative shifts into actionable strategies for the legal community. This webinar successfully provided attendees with the tools needed to navigate the new tax reality with confidence.
To learn more about the Tax Committee, go here. To learn more about the Solo & Small Firm Committee, go here. For a listing of upcoming events, check out the calendar on AABANY’s website.