One, Big, Beautiful Bill provisions – Businesses
Passenger vehicle loan interest transition relief for 2025 (Section 70203)
Transition relief overview
IRS provides transitional relief for tax year 2025 for lenders and other recipients of qualified interest who must file information returns with the IRS and provide statements to borrowers showing the total amount of interest received on qualified passenger vehicle loans and other relevant information.
How the relief applies for 2025
Applies to reporting requirements under the One, Big, Beautiful Bill for qualified passenger vehicle loans
Lenders and other payors should refer to Notice 2025-57 and other related guidance to determine how the 2025 reporting rules apply
Related resources
Notice 2025-57, Transitional Guidance Regarding Returns Relating to Certain Interest on Specified Passenger Vehicle Loans Received in a Trade or Business PDF
Transition relief for vehicle loan interest reporting (IR-2025-105)
Qualified Production Property (Section70307)
Overview of changes
Qualified Production Property deduction allows businesses to write off the cost of certain property more quickly.
Deduction percentage
For most qualifying business property bought and put into use after Jan. 19, 2025, businesses can now deduct 100 percent of the cost in the first year. This means they do not have to spread the deduction over several years.
Who this helps
This change mainly helps businesses that buy things like:
Equipment and machinery
Certain plants
Other qualifying business property
Current guidance
Until official regulations are issued, taxpayers may follow existing depreciation rules with updated dates and percentages based on this new law.
Related resources
Guidance on the additional first year depreciation deduction amended as part of the One, Big, Beautiful Bill (IR-2026-06)
Interim Guidance on Additional First Year Depreciation Deduction under § 168(k) (Notice 2026-11) PDF
Third Party Network Transactions (Section 70432)
Overview of changes to Third Party Network Transactions
Proposed regulations were published to explain when backup withholding applies to certain payments made through third-party payment platforms.
Definition
Backup withholding is a tax that may be withheld from a payment when certain reporting rules apply.
Who this affects
Third-party settlement organizations, such as payment apps and online platforms that process payments for sellers and service providers
Sellers and payees who receive payments through these platforms
Key change to the threshold
Under the updated law, backup withholding generally applies only when both of the following are true in a calendar year:
The total payments to a person are more than $20,000, and
The total number of transactions is more than 200
This replaces the lower $600 threshold that had been scheduled under prior law.
What this means for sellers
If you receive payments through a third-party platform and do not exceed both limits, your payments generally will not trigger backup withholding under these proposed rules.
This change may reduce withholding for individuals and small businesses with lower payment volumes.
What this means for payment platforms
Third-party platforms must:
Track both the number of transactions and the total dollar amount paid to each payee
Apply backup withholding only after both thresholds are exceeded
Call for comments
The IRS is accepting public comments through regulations.gov before issuing final regulations.
Related resources
Treasury, IRS issue proposed regulations reflecting changes from the One, Big, Beautiful Bill to the threshold for backup withholding on certain payments made through third parties (IR-2026-03)
Form 1099-K FAQ updates (FS-2025-08) PDF
Employee Retention Credit (ERC) limitation (Section 70605)
Overview of the limitation
The One Big, Beautiful Bill Act limits credits and refunds for employee retention credits (ERC) claimed for the third and fourth quarters of 2021 that were filed after Jan. 31, 2024
IRS FAQs provide general information, including when a claim was timely filed and what appeal rights apply if an ERC claim is disallowed
Related resources
FAQs on Employee Retention Credit compliance (IR-2025-106)
