Congress recently passed the One Big Beautiful Bill—and while the headlines are buzzing with talk of tax cuts and deficits, we’re here to focus on what really matters to your business: what it means for your IT budget and strategy.
Spoiler alert: this bill makes it a lot easier (and smarter) to invest in your technology and cybersecurity in 2025.
Here’s what small business owners should know.
Immediate Expensing for IT Investments
The new law allows businesses to fully expense 100% of qualifying equipment and software in the same year it’s purchased. That means you can write off the cost of laptops, servers, network upgrades, security software, automation tools, and more—right away, instead of depreciating it over several years.
Why this matters:
It improves cash flow, reduces your tax liability this year, and makes it far more attractive to finally replace aging infrastructure or launch that automation project you’ve been putting off.
Section 179 Deduction Doubled
The Section 179 deduction limit has jumped from $1.25 million to $2.5 million. This gives you more flexibility to invest in larger-scale upgrades or multi-location tech deployments without losing tax advantages.
Use this to:
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Refresh your entire office’s computers and printers
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Upgrade firewalls, switches, and backup systems
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Transition to cloud platforms like Microsoft 365 or Google Workspace
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Deploy cybersecurity platforms with next-gen protection
R&D Tax Credits: Now More Accessible
If your business is experimenting with automation, developing internal tools, or customizing CRM systems, there’s good news. The bill reinstates immediate expensing for research and development costs for small firms with under $31 million in annual revenue—and it’s retroactive to 2022.
This could apply to:
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Building workflow automations in your CRM
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Piloting AI agents for customer support
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Creating proprietary scheduling or quoting tools
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Enhancing reporting dashboards and integrations
Important: Talk to your accountant to see if your projects qualify for R&D credits under the new guidelines. You might be eligible to amend past returns and claim new deductions.
Simpler Digital Payment Reporting
The 1099-K reporting threshold has been raised again. Platforms like PayPal, Stripe, and Venmo no longer need to report transactions under $20,000 and fewer than 200 per year. If you process payments digitally, this reduces administrative headaches and simplifies tax season.
What this means for you: It’s a great time to lean into modern billing and invoicing tools, set up automated payment workflows, and reduce manual reconciliation.
Green Light for Cybersecurity Investments
This bill’s tax incentives create a perfect opportunity to strengthen your defenses against cyber threats. Qualifying security hardware and software can now be expensed immediately, making those long-delayed upgrades far more budget-friendly.
If you’ve been postponing investments in:
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Endpoint protection
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Multi-factor authentication (MFA)
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Email security and DNS filtering
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Security awareness training
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Vulnerability scanning and mobile device management
…there’s never been a better time to move forward.
Not sure where to start? Contact NetConnect—we’ll assess your current cybersecurity setup and provide a roadmap to ensure you’re protected, compliant, and future-ready. You can contact us by calling (718) 967-7000 or emailing info@nctny.com.
What to Do Next
This isn’t just a tax break—it’s a strategic opportunity. If you’re planning any IT purchases or technology upgrades this year, get the most out of your investment.
Here’s what we recommend:
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Talk to your accountant about how the Big Beautiful Bill applies to your business.
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Contact NetConnect to review your technology roadmap and prioritize upgrades.
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Explore tax-advantaged automation and cybersecurity investments while the incentives are in place.
Let’s Make 2025 Your Most Tech-Savvy Year Yet
At NetConnect, we specialize in helping small and mid-sized businesses modernize their IT systems, automate processes, and secure their networks. With these new tax-friendly policies in place, there’s no better time to act.
Let’s talk about how you can use this bill to work smarter, stay safer, and set your business up for long-term success.
Schedule your IT & Cybersecurity Strategy Session with NetConnect today. Call us at (718) 967-7000 or email us at info@nctny.com.
NetConnect has over 30 years of experience helping small businesses simplify IT with responsive support, strategic planning, and powerful cybersecurity solutions.
