In a groundbreaking move for the startup ecosystem, the One Big Beautiful Bill Act (OBBBA) of 2025 has introduced a series of tax incentives designed to fuel innovation and growth.
Tabasum Burkland, a prominent voice in startup finance and a key figure at Burkland Associates, recently shared insights on how this legislation could reshape the landscape for emerging businesses, as reported by Crunchbase News.
Understanding the OBBBA and Its Core Benefits
The OBBBA reinstates full domestic R&D expensing, allowing startups to deduct research and development costs in the year they are incurred, a significant relief for cash-strapped innovators.
Additionally, the act enhances Qualified Small Business Stock (QSBS) exclusions, offering greater tax benefits for investors and founders who hold shares in eligible startups for over five years.
Another key provision is the restoration of 100% bonus depreciation for 2025, enabling businesses to immediately write off the full cost of qualifying assets, thus improving cash flow.
Historical Context: A Return to Startup-Friendly Policies
Historically, tax policies like R&D expensing have fluctuated, with previous restrictions forcing startups to amortize costs over several years, stifling early-stage growth.
The reintroduction of these incentives under OBBBA marks a return to policies last seen in earlier decades, reflecting a renewed governmental focus on fostering entrepreneurial innovation.
Impact on Startups and the Broader Economy
For startups, these changes mean more capital to reinvest in product development and hiring, as highlighted by Burkland in her analysis of the act’s potential to drive job creation.
On a broader scale, the legislation could stimulate economic growth by encouraging investment in high-risk, high-reward ventures, positioning the U.S. as a global leader in tech innovation.
Challenges and Future Outlook
Despite the optimism, Burkland cautions that implementation challenges, such as navigating complex tax codes, may hinder smaller startups from fully leveraging these tax benefits.
Looking ahead, experts anticipate that sustained advocacy and simplified processes could ensure the OBBBA’s long-term success, potentially inspiring similar legislation globally for startup ecosystems.
As the startup community adapts to these changes, voices like Tabasum Burkland’s will be crucial in guiding founders to maximize the opportunities presented by this transformative act.
Alfred Lee
