BY PHIL SHETSEN
If you run any type of business, but especially one in the chauffeured car industry, you want to protect your margins, invest in your equipment and fleet without massive tax bills, pay your drivers competitively, and eventually, hand off your organization or wealth without getting crushed by estate taxes.
The One Big Beautiful Bill Act (OBBBA), signed into law in early July, was designed with businesses like yours in mind. While it’s been debated heavily in multiple forums—there are pros and cons—the bill is decidedly beneficial for small businesses. It permanently extends key tax breaks from the 2017 Tax Cuts and Jobs Act, introduces new deductions for service workers, and increases flexibility in estate and personal tax planning. Unfortunately, there are tradeoffs, including cuts to programs like Medicaid and SNAP (food assistance), but the financial upside for small business owners, especially in high-expense, asset-heavy industries, is huge.
Here’s how the law reshapes your business strategy in plain terms:
1. Write Off More, Faster: Section 179 & Bonus Depreciation
What’s new:
❱ Section 179 deduction limit is now $2.5M (with a $4M phase-out cap), adjusted annually.
❱ 100% bonus depreciation is back, permanently, on qualifying assets like new vehicles placed in service after Jan 19, 2025.
What it means for you: Upgrading your fleet? You can now write off the full value immediately. This is a game-changer for cash flow and reinvestment ... and might even soften the blow of rising vehicle costs.
2. More Profit, Less Tax: QBI Deduction Jumps to 23%
What’s new:
The pass-through deduction under Section 199A increases from 20% to 23% for eligible sole proprietors, S-corps, and partnerships.
What it means for you: If you’re a profitable owner-operator, this deduction cuts a bigger chunk off your tax bill. Transportation businesses are generally not classified as “specified service,” so you’re likely in the clear.
3. Live in a High-Tax State? SALT Deduction Just Quadrupled
What’s new: The SALT (State and Local Tax) deduction cap rises from $10,000 to $40,000 for individuals with MAGI under $500,000. It phases down above that and sunsets in 2030.
What it means for you: If you live in New York, New Jersey, California, or other heavily taxed states, this is real money back in your pocket, especially if your personal property and state taxes are high.
4. Tip & Overtime Deductions: Give More, Tax Less
What’s new: Drivers can exclude up to $25,000 in tips and up to $25,000 in overtime pay (joint filers) from federal taxes.
❱ Applies to individuals under $300,000 income ($150K single). What it means for you: Your employees keep more of what they earn, and you may reduce payroll tax exposure. This could also make recruitment and retention easier.
5. Auto Loan Interest: Still Deductible, but Audit-Ready
What’s new: No changes here, but the IRS is watching. Keep mileage logs. Separate personal vs. business use clearly.
What it means for you: As long as you’re using clean records, you can still deduct interest on loans tied to your fleet.
6. Estate & Gift Tax: $15 Million Permanent Exemption
What’s new: The federal estate and gift tax exemption is now $15 million per person, indexed annually, and made permanent.
What it means for you: Thinking about succession planning? Gifting shares of your business? Now’s the time. You’ve got room to plan without fear.
7. Key Moves to Make Now
❱ Buy Vehicles Before Year-End: Get the most out of Section 179 and bonus depreciation by putting new fleet vehicles into service ASAP.
❱ Check Your Entity Structure: Make sure you’re structured as a pass-through (S-corp, LLC) and not flagged as a specified service business. Consult your CPA if you’re unsure.
❱ Track Income to Stay Under Phaseouts: Whether it’s for SALT deductions or tip exclusions, timing income and smart planning can help you stay below key thresholds.
❱ Restructure Driver Pay: Use the new tip and overtime exclusions to your advantage. This could mean net more for employees and less tax exposure for you.
❱ Start or Update Estate Planning: The $15M exemption gives you more tools to preserve your business and wealth for the next generation.
Final Thoughts
The One Big Beautiful Bill Act gives chauffeured transportation business owners serious advantages:
❱ Lower taxes when you grow or buy assets
❱ Bigger personal deductions in high-cost areas
❱ New payroll strategies to attract and retain drivers
❱ More certainty in estate planning for generational wealth transfer
In the end, this law isn’t just about tax codes, it gives you the flexibility to grow and plan for the future. If you haven’t started talking to your CPA, financial advisor, and payroll specialist since its passage, now is the time to make the most of it. If you wait, you’ll leave real money on the table. [CD0925]
Phil Shetsen is the president of Bona Vita Benefits. He can be reached at
