Represenative Eli Crane is praising a new tax reform that is helping small business owners, farmers, and ranchers in rural Arizona, following the efforts of the One Big Beautiful Bill.
“Delivering for rural Arizonans,” Crane said, pointing to parts of the bill that offer financial relief and long-term stability for those who work in agriculture.
New Tax Reforms
One of the most significant changes in the law is the permanent extension of the Qualified Business Income (QBI) deduction. Many small business owners can deduct 20% of their income from taxes as a result.
Reported by the Tri-State Livestock News, the income requirements for this deduction have been raised, and they will be updated to reflect inflation beginning in 2026. Additionally, small business owners who actively manage their company and earn at least $1,000 in eligible income are guaranteed a $400 deduction under a new rule.
The law also raises the lifetime estate and gift tax exemption to $15 million per person (or $30 million for couples), starting in 2026.
This means more family farms and ranches can be passed down to the next generation without heavy tax burdens. For 2025, the exemption stays at $13.99 million. Other rules, such as the annual gift limit and the step-up in basis for inherited property, remain unchanged.
Another part of the bill raises the State and Local Tax (SALT) deduction cap from $10,000 to $40,000 for the years 2025 through 2029. However, for individuals earning over $500,000, the cap will gradually decrease to $10,000.
This deduction includes state income taxes, property taxes on your home, car taxes, and some sales taxes.
The mortgage interest deduction has also been made permanent. Homeowners can deduct interest on the first $750,000 of their home mortgage. But this only applies to personal homes. Interest on farm or business property is still fully deductible.
With some changes taking effect in 2025 and others in 2026, the law introduces long-term updates that many rural residents hope will support growth and sustain family operations for years to come.
