Stride Live Webinar Recap with Morgan Holmes
Tax legislation is rarely simple—but the latest bill making its way through Congress is one business owners should be paying attention to.
In our May 29 Stride Live session, we sat down with Morgan Holmes, Managing Partner of Stride Tax, to talk through what’s in the “One Big Beautiful Bill” (as it’s been nicknamed), what’s likely to change, and what business owners should be watching for as the conversation moves forward.
Morgan provided valuable insights into how this bipartisan tax package could deliver significant savings and opportunities for proactive business owners—but also why timing will be critical once the bill passes.
Here’s what stood out.
1. Bonus Depreciation Extension Could Be Back on the Table
One of the biggest opportunities in the bill is a proposed extension of 100% bonus depreciation—a key tax planning tool for many businesses.
Currently, bonus depreciation is phasing down to 60% for 2024, and will continue to decline further unless new legislation is passed. The “One Big Beautiful Bill” proposes to retroactively restore full 100% bonus depreciation for 2023 and extend it through 2025.
For businesses that made large equipment or asset purchases in 2023, this change could mean significant retroactive tax savings—but you’ll need to act quickly once the bill is passed to capture the benefit.
Summary Insight: If passed, this change could provide a major opportunity for businesses that made big purchases in 2023—offering a retroactive tax benefit.
2. Full R&D Expense Deduction Could Return
In 2022, tax law changes required businesses to amortize R&D expenses over five years instead of expensing them immediately. This shift has created significant cash flow challenges, particularly for technology-focused and growth-oriented businesses.
Morgan explained that the “One Big Beautiful Bill” would reverse this change and allow businesses to once again fully expense R&D costs in the year they’re incurred. This means companies investing in innovation—such as software development, cybersecurity improvements, or process automation—could see a direct and immediate benefit to their tax positions.
Tip: If your business invests in software development or process innovation, this could offer significant savings. Start tracking your R&D expenses carefully now so you can maximize the benefit if this provision passes.
3. Improved Interest Expense Deduction
Another important provision targets the deduction for business interest expense. Under the current rules, limitations are based on EBIT (earnings before interest and taxes), which can be restrictive for capital-intensive businesses.
The bill proposes to revert to the prior EBITDA-based limitation, which includes depreciation and amortization in the calculation—giving businesses more flexibility to deduct interest expense and free up cash flow.
Morgan noted that this will be particularly valuable for companies that rely on financing for growth or have taken on debt to expand their operations.
Summary Insight: A more generous interest deduction can improve cash flow and investment flexibility—a critical lever in today’s higher interest rate environment.
4. Expect the Bill to Move Quickly
There is broad bipartisan support for this legislation. The House passed its version of the bill with overwhelming approval earlier this year, and the Senate is expected to move quickly after final negotiations.
Morgan emphasized that if passed this summer, the bill would impact both 2023 and 2024 tax filings. Businesses need to be ready to take action fast—including potentially amending 2023 returns to capture retroactive benefits.
Summary Insight: If passed this summer, the bill will affect 2023 and 2024 tax filings. Businesses need to be ready to act quickly.
5. Work with Your Tax Team This Summer
With these provisions likely to pass mid-year, timing is everything. Waiting until the end of the year could mean missing out on valuable deductions.
Morgan advised businesses to meet with their tax advisors this summer to develop an action plan. If the bill passes, your tax team may recommend amending 2023 returns to claim retroactive benefits—and you’ll want to plan Q3 and Q4 purchases and investments accordingly to take advantage of any extended tax breaks.
Tip: Don’t wait until year-end. Schedule a tax strategy check-in this summer to prepare and position your business to benefit fully.
6. Proactivity Is Your Best Advantage
As always, Morgan reinforced the importance of proactive planning. Tax law changes can happen quickly, and businesses that monitor developments, maintain strong documentation, and work closely with their advisors will be positioned to benefit the most.
Be sure your financial team is keeping detailed records of capital purchases and R&D expenses now, so you’re ready to act if the bill passes. And keep an eye on the legislative process—changes could still be made during final negotiations.
Summary Insight: Tax law changes can happen fast—businesses that are prepared and proactive will capture the greatest benefits.
Final Thoughts
The “One Big Beautiful Bill” presents a rare opportunity for businesses to reclaim valuable deductions and optimize tax outcomes—but the window to act will be short.
As Morgan Holmes reminded us, proactive tax planning isn’t just about saving money—it’s about fueling growth and creating financial flexibility. By preparing now, working with your tax team this summer, and staying informed as the bill moves forward, you can position your business to take full advantage of the new opportunities this legislation may provide.
Now is the time to connect with your advisors, strengthen your documentation, and build a clear plan. Stride Services will continue monitoring the bill’s progress and providing updates to help you stay ahead.
Want to watch the full conversation?
Watch the full replay on LinkedIn.
About Stride Services
Stride Services is a comprehensive financial partner for MSPs, providing outsourced bookkeeping, tax, and advisory services designed to improve clarity, support confident decision-making, and eliminate financial fire drills. Whether you need monthly accounting support or proactive tax guidance, Stride helps you stay on track and plan for what’s next.
To learn more, visit www.stride.services.
