In a medspa, client care always comes first. But while you’re focused on treatments and service, new laws like the One Big Beautiful Bill Act (OBBBA) can quietly shift the financial health of your practice. Overlooking it doesn’t just mean missing tax breaks; it could mean leaving money on the table and losing out on opportunities to build a stronger, more loyal team.
Passed on July 4, 2025, OBBBA introduces provisions designed to reduce your tax burden, boost staff retention and support long-term planning. Understanding which pieces apply to your practice can turn dense, and let’s face it, boring legislation into a real advantage for your business.
Immediate Deductions on Major Investments
One of the biggest changes is the return of 100% bonus depreciation. This allows you to deduct the full cost of qualified assets, including those for equipment, technology or even renovations, in the year you purchase them. Therefore, that new laser system, RF microneedling device or body contouring machine you’ve wanted to purchase no longer has to be written off slowly over several years.
In addition, the Section 179 limit for business purchases has been raised to $2.5 million. Section 179 is the part of the tax code that lets business owners deduct the cost of qualifying equipment or software right away, instead of depreciating it slowly over several years. In practice, it works like bonus depreciation but with some different rules and thresholds. Together, these provisions give you much more flexibility to modernize your practice, whether with equipment, technology or renovations, without carrying a heavy tax bill forward.
Think of it as the tax equivalent of RF microneedling: quick results you can actually see, with long-term benefits that keep compounding. Instead of years, the impact is immediate, freeing up cash for growth and reinvestment.
Build Loyalty While Cutting Taxes: The Power of SECURE 2.0
While not technically part of OBBBA, another recent law, SECURE 2.0, offers one of the most powerful tax incentives available to small business owners today. For many medspas, the idea of offering a retirement plan has been out of reach, but now the government is helping foot the bill.
If you have 50 or fewer employees, you can qualify for:
Up to $5,000 per year in tax credits for the first three years to offset startup and administrative costs
A credit of up to $1,000 per employee for employer contributions, fully covered in the first two years and gradually phased out over five years
An extra $500 credit for adding automatic enrollment to a new plan
This adds up to serious government support, turning retirement benefits into both a tax-saving opportunity for the owner and a valuable retention tool for staff. The catch? These incentives only apply to new retirement plans. If you’ve delayed setting one up, now is the perfect time to reconsider because waiting means walking away from benefits specifically designed for small businesses.
A Permanent Qualified Business Income Deduction
The Qualified Business Income (QBI) deduction, which lets many owners of pass-through entities such as LLCs and S-Corps deduct up to 20% of their qualified business income, was on shaky ground in recent years, with expiration dates looming. Under OBBBA, it’s now permanent.
That permanence matters. Temporary tax breaks make it difficult to plan, and many business owners hesitate to rely on them. By locking QBI into place, OBBBA gives you a reliable, ongoing deduction you can factor into multi-year tax and growth strategies. For medspa owners, that means more predictability in cash flow and greater confidence when making decisions about reinvestment or expansion.
It functions a lot like a medspa membership program: consistent, predictable and a reliable way to deliver ongoing value. For owners, it adds a degree of certainty in a profession where financial surprises are the last thing you need.
Friendlier Rules for Business Loans
Expansion often requires borrowing, whether for a second location, treatment room build-out or advanced technology. Under prior rules, limits on business interest deductions often meant owners couldn’t write off the full cost of financing. OBBBA raises the cap, allowing more of your loan interest to be deducted each year.
Here’s what that looks like in practice: if your medspa takes out a $500,000 loan for a new laser suite and equipment, you may pay around $40,000 in annual interest. Previously, you might only have been able to deduct part of that amount. With OBBBA, you could deduct nearly all of it, which at a 30% tax rate could translate to $12,000 or more in tax savings each year.
Personal Tax Benefits You Shouldn’t Overlook
OBBBA also includes changes that touch individual taxpayers directly, changes that can benefit both practice owners and their teams:
Interest deductions for certain U.S.-assembled vehicles (2025–2028): If you’re financing a new car for your commute between locations, or even a vehicle used partly for business, you may be able to deduct the loan interest. That lowers the true cost of upgrading your transportation.
Charitable deductions without itemizing (starting in 2026): Many business owners believe in supporting their community by giving to local causes, sponsorships or nonprofits. With this change, you can deduct those donations even if you don’t itemize, creating an easier path to tax savings while still supporting organizations that matter to you.
Permanent lower tax brackets (from 2017): For owners who are already navigating high personal income, the certainty that lower tax rates are here to stay helps with long-term financial planning, retirement savings and investment decisions.
No federal tax on tips: This provision directly affects service team members who receive gratuities. It puts more money in their pockets without increasing payroll costs, which can improve retention and morale at a time when competition for skilled staff is high.
Making OBBBA Work for Your Practice
On paper, OBBBA is dense legislation. In practice, it’s a toolkit filled with opportunities. Some provisions, like bonus depreciation, can create immediate cash flow relief. Others, such as the permanent QBI deduction, reward long-term planning and the right business structure.
For medspa owners, the takeaway is simple: tax planning should be about much more than filing returns. Done right, it can fuel growth, improve staff retention and reinforce the financial health of your practice. The challenge is that the best results come from tailoring these provisions to your specific situation, just as no two treatment plans are ever the same.
With thoughtful strategy and timing, OBBBA can be more than another headline in the news cycle. It can be a catalyst for profitability, stability and confidence in your next stage of growth. Medspa owners who overlook these provisions risk undercutting their own profitability and losing key staff to competitors who seize the opportunity. To get there, it’s important to work with a tax advisor who understands the medspa industry. If you’d like to explore how these changes apply to your practice, the team at Account Sense is always happy to help.
