What the New OBBBA Tax Law Means for Iowans & How to Prepare Now

Shallon Weis |

On July 4, President Donald Trump signed the One Big Beautiful Bill Act (OBBBA) into law following swift approval in both the House and Senate. This sweeping tax legislation will bring significant changes to how individuals, businesses, and nonprofits plan for taxes — many of which will take effect in 2025 or 2026.

Whether you’re running a family farm in north Iowa, leading a nonprofit in Des Moines, or operating a Main Street business in a small town, these changes could impact your bottom line. This is the time to get ahead, understand your options, and plan strategically.

At Bradford Financial Center, we’ve been serving Iowans long enough to know that tax law changes often create both challenges and opportunities. With the bill now signed, we recommend sitting down with your financial advisor to review your tax strategy and run the numbers on potential impacts.

Here’s where to start.

Tax Planning Opportunities to Consider Now

1. Reevaluate Your Business Structure

With the corporate tax rate staying low and expanded Section 1202 benefits now available to more small business shareholders, Iowa pass-through businesses valued under $75 million should model whether converting to a C corporation could be beneficial, especially if you’re eyeing a future sale, expansion, or outside investment.

For farmers, manufacturers, and service businesses, choosing the right entity structure could mean keeping more in your pocket long term.

2. Review Your Business Deductions

The OBBBA includes changes to bonus depreciation, business interest expense, and R&D deductions that could retroactively affect your 2025 taxes. Iowa manufacturers, ag processors, and tech companies may especially benefit from running scenarios to see how these shifts affect their deductions.

3. Plan Ahead for Clean Energy Credit Changes

If you’ve been considering renewable energy investments, such as installing solar panels on your business, upgrading equipment, or building energy-efficient facilities, now’s the time to review deadlines. Many Inflation Reduction Act-related credits will phase out sooner than expected.

Strategic timing will be crucial for Iowa agribusiness, cooperatives, and rural electric providers looking to lock in credits before they disappear.

4. Leverage Cost Segregation

The OBBBA revives 100% bonus depreciation and allows immediate deductions for certain newly constructed nonresidential property used in manufacturing, production, or refining.

Iowa manufacturers, grain processors, and commercial developers could accelerate cost segregation studies now to reduce 2025 tax payments.

5. Nonprofits: Prepare for Compensation Changes

Iowa nonprofits paying any employee over $1 million annually will now face a 21% executive compensation excise tax. Additionally, Iowa colleges and universities may face higher endowment excise taxes. Strategic planning will help avoid surprises.

What’s Changing Under the OBBBA | Highlights for Iowa

While the new law is packed with details, here are some of the most impactful updates for individuals, businesses, and communities across the state:

  • No rate hikes for now: The current federal income tax brackets will stick around, with annual inflation adjustments.
  • Boost for small business owners: The 20% deduction for qualified pass-through business income is now permanent, helping keep the effective top rate lower for many Iowa entrepreneurs.
  • Bigger SALT deduction window: The state and local tax deduction limit is temporarily increased to $40,000 for most eligible taxpayers through 2029, before dropping back to $10,000 in 2030.
  • Estate and gift tax threshold jumps: Starting in 2026, you can pass on up to $15 million without triggering federal estate or gift taxes, an important change for family farms and closely held businesses.
  • More generous business write-offs: Beginning in 2025, companies can fully deduct the cost of qualifying property and equipment, with higher limits for Section 179 expensing.
  • Research write-offs return: Domestic research and development costs will once again be fully deductible in the year they’re incurred.
  • Opportunity zones stay in play: The program encouraging investment in economically challenged areas is extended, which could benefit rural revitalization and urban redevelopment projects in Iowa.
  • Tweaks for international operations: Businesses with overseas activities will see adjustments in how certain income and deductions are calculated.

The Bottom Line for Iowans

This isn’t just a federal tax update; it’s a planning opportunity for Iowa families, farms, and businesses. The right strategy could help you:

  • Reduce your tax liability
  • Improve cash flow
  • Make smarter investment and expansion decisions
  • Keep more of what you’ve worked hard to earn

Now is the time to run the numbers.
At Bradford Financial Center, we’re ready to help you navigate these changes with a personalized plan that fits your goals.

Call us today to schedule a tax strategy review before year-end.


Let’s make sure you’re ready for 2025 and beyond.

For educational purposes only. All information presented is collected from sources believed to be reliable, but may not be guaranteed.