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How tax changes in OBBBA impact the business sector and key industries

Photographic portrait of Dr. Brandon M. Pizzola
Dr. Brandon Pizzola

Principal

3 minute read 03 Dec 2025
Related topics
Tax

Analyzing OBBBA’s projected $1.8t business tax reduction and industry-specific impacts through 2034

Aman Rai, Manager, Quantitative Economics and Statistics, Ernst & Young LLP, contributed to this article.

The One Big Beautiful Bill Act (OBBBA) is one of the most significant tax reforms in recent years, combining extensions of the Tax Cuts and Jobs Act with new provisions that impact nearly every industry. With an estimated $4.5t in net tax reductions, including $1.8t for businesses, this legislation introduces sweeping changes that executives, CFOs, and tax professionals cannot afford to ignore.

How EY can help

From enhanced qualified business income deductions to full expensing for property and research costs, OBBBA’s provisions will influence corporate strategies and passthrough entities alike. But the effects aren’t uniform – industry-specific impacts vary significantly. Agriculture, mining, and construction could see tax reductions of up to 27%, while services stand to gain the largest overall benefit. Meanwhile, sectors like transportation and utilities face unique challenges due to clean energy credit changes.

 

Understanding these shifts is critical for planning, compliance, and stakeholder communication. This analysis, originally published in Tax Notes, breaks down the numbers, compares current-law and current-policy baselines, and highlights which industries and organizational forms benefit most.

 

Click here to read the full article

Summary 

OBBBA cuts business taxes by $1.8t from 2025 to 2034, with passthrough entities receiving most benefits and corporations less. Key provisions include qualified business income deductions, full property expensing, and rate reductions. Agriculture sees the largest percentage drop, while services gain the highest overall reduction.

About this article

Photographic portrait of Dr. Brandon M. Pizzola
Dr. Brandon Pizzola
Principal
Economist with a strong background in economic and econometric modeling. His analyses of public policy issues have been published in academic journals and the media.
Related topics
Tax

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