On July 4, 2025, the President of the United States signed into law a sweeping federal bill that includes one of the most significant tax reforms in recent years. While the legislation has generated intense debate across the political spectrum, this article focuses on one thing only: what it means for investors.

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At its core, the bill makes permanent a trio of corporate tax provisions that were originally set to phase out after the Tax Cuts and Jobs Act (TCJA) of 2017. For business owners, operators, and investors, particularly those with interests in asset-heavy industries like real estate, manufacturing, and healthcare, these changes could significantly influence capital allocation and long-term returns.

1. Bonus Depreciation Is Here to Stay

What it is:
Bonus depreciation allows businesses to immediately deduct a large percentage of the cost of qualifying new assets (such as machinery, vehicles, or property improvements) in the year the investment is made, rather than depreciating it over a longer period.

Why it matters:
This change accelerates cash flow, improves internal rates of return (IRR), and can materially affect a project’s payback period, especially in capital-intensive sectors.

Investor takeaway:
Expect to see faster write-offs and improved after-tax yields on new development projects and equipment-heavy investments. Bonus depreciation may also improve the viability of value-add or turnaround strategies that require upfront CapEx.

2. Full R&D Expensing Returns

What it is:
Instead of amortizing research and development (R&D) expenses over five years (as required since 2022), companies can now deduct the full cost of R&D in the same year those expenses are incurred.

Why it matters:
For companies in tech, biotech, advanced manufacturing, and clean energy, many of which rely heavily on innovation, this is a direct boost to profitability.

Investor takeaway:
Early-stage and growth-stage companies with R&D-heavy business models may see stronger financials, better valuations, and improved cash runway. Limited partners (LPs) in venture and growth funds may benefit from stronger fund performance.

3. Interest Deduction Rule Reverts to EBITDA

What it is:
The TCJA previously limited interest expense deductions based on a business’s EBIT (earnings before interest and taxes). The new bill reverts that calculation to EBITDA (earnings before interest, taxes, depreciation, and amortization), making more of the interest deductible.

Why it matters:
This is a material change for leveraged deals, including private equity transactions, real estate financing, and infrastructure projects. By allowing more interest to be deducted, businesses can reduce taxable income and improve cash flow.

Investor takeaway:
Expect improved returns on debt-financed assets and a renewed appetite for strategic leverage. For real estate and infrastructure investors, this change may enhance underwriting assumptions on debt service coverage and NOI margins.

Framing the Bigger Picture

While some provisions of the bill, such as its impact on the federal deficit and cuts to social programs, remain hotly debated, the business-side tax provisions are relatively straightforward in their implications.

According to the Congressional Budget Office, these provisions will cost approximately $600 billion over the next decade, but are expected to encourage greater business investment and productivity growth in the short term.

For investors, this is a rare instance of increased tax certainty, providing a clearer, longer runway for strategic planning, cost forecasting, and deal modeling.

Final Thoughts

At Green Harvest Capital, we’re focused on sectors where tax policy directly affects capital deployment: multifamily, hospitality, and industrial. These tax changes may open new opportunities for investors to pursue accelerated growth, asset repositioning, and innovation-backed value creation.

As always, the best strategies won’t just chase tax advantages, they’ll combine smart underwriting, strong operators, and a long-term view.

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