The One Big Beautiful Bill Act: Key Changes for Individuals and Business Owners
The comprehensive guide to 2025’s major tax legislation and what it means for you.
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Key Changes Summary
The Bottom Line Up Front
The new law incorporates most of the 2017 Tax Cuts and Jobs Act provisions as well as new tax breaks and spending cuts.
| Provision | Details | Duration | Who Benefits | Planning Considerations |
|---|---|---|---|---|
| SALT Deduction | Cap increases from $10,000 to $40,000 | 5 years (reverts to $10,000) | High-tax state residents earning <$500,000 *Subject to phase-out |
Time major deductible expenses; consider state tax planning |
| Child Tax Credit | Permanently increases credit to $2,200 (adjusted for inflation) *Makes permanent the refundable portion of $1,400 adjusted for inflation – $1,700 in 2025 |
Permanent | Families with children, income limits apply *Subject to phase-out |
Review family tax planning and timing of major expenses |
| No Tax on Tips | Up to $25,000 above-the-line deduction for tip income | Through 2028 | Service industry workers *Subject to phase-out |
Compensation planning; employer reporting requirements |
| No Tax on Overtime | Above-the-line Deduction for up to $12,500 ($25,000 joint) on overtime pay up to $150,000 ($300,000 joint) of income | Through 2028 | Hourly and salaried workers *Subject to phase-out |
Consider overtime scheduling and compensation structure |
| Senior Deduction | Additional $6,000 standard deduction | 2025–2028 | Seniors with income <$75,000 (single)/<$150,000 (married) | Review retirement income timing and Roth conversions |
| Pass-Through Deduction | Makes the qualified business income (QBI) deduction permanent and keeps the rate at 20%. Expands the deduction limit phase-in range for SSTBs and other entities subject to the wage and investment limitation by increasing the $50,000 amount for non-joint returns to $75,000 and the $100,000 amount for joint returns to $150,000. |
Permanent | Business owners, contractors, freelancers | Entity structure review; timing of business income |
| QSBS Expansion | Asset threshold $50M→$75M; exclusion $10M→$15M | Permanent | Small business investors and founders | Accelerate qualifying investments; review exit timing |
| Estate Tax | Exemption increases to $15M per person | Permanent | High-net-worth families | Update estate plans; consider gifting strategies |
| Auto Loan Interest | Up to $10,000 deduction for US-made vehicles | Through 2028 | Car buyers *Subject to phase-out |
Time vehicle purchases; consider US-made options |
| EV Credits | Tax credits eliminated | Ends September 2025/June 2026 | EV buyers | Accelerate EV purchases before deadline |
| Capital Expenditures | 100% Bonus depreciation made permanent; Section 179 increased to $2.5 million; 100% first year deduction allowed for Qualified Production Property | Permanent for assets acquired and placed in service after January 19, 2025 QPP eligible through 2029 |
All businesses | Review need and timing for capital expenditures prior to year-end |
| Research and Experimental Expenditures | 100% expensing for domestic R&D and equipment | Permanent Retroactive R&D expensing available to 2022 for taxpayers with average annual gross receipts of $31 million |
All businesses | Accelerate capital investments and R&D spending |
| Business Interest Limitation | Reinstated EBITDA limitations | After December 31, 2024 | Leveraged businesses | Review debt structure for limitations under new rules |
| Medicaid Work Requirements | 80 hours/month for able-bodied adults <65 | Permanent | Low-income individuals and families | Review benefit eligibility; plan for potential changes |
| SNAP Changes | States pay 5% of benefits, 75% of admin costs | Starting 2028 | SNAP recipients | Monitor state policy changes; budget for potential benefit reductions |
Individual Taxpayers
Contact UsBusiness Owners
Contact UsYour 2025 Tax Changes Guide: What the 'One Big Beautiful Bill' Means for You
The One Big Beautiful Bill (OBBB) is the most sweeping tax reform in nearly a decade, introducing over $4 trillion in changes that may affect how much you owe, how you file and how you plan for the future.
This guide breaks down what’s new, what it means for you and what actions you may need to take.
We’ll highlight:
- Changes that could affect your income taxes, retirement plans and estate strategy
- Important deadlines you won’t want to miss
- Ways to avoid common mistakes and maximize your savings under the new law
Webinar: Decoding the One Big Beautiful Bill Act
In this webinar, you will gain accessible, actionable insights to navigate the evolving landscape of the One Big Beautiful Bill Act. Unpack how the bill’s provisions impact individual and business tax provisions, compliance obligations, implementation timelines and long-term tax planning strategies.
Important Dates
Action Items
What Should You Do?
INDUSTRY INSIGHT
The One Big Beautiful Bill’s Impact on
Real Estate and Construction
High interest rates continue to pressure construction margins and cash flow. At the same time, the One Big Beautiful Bill (OB3) has changed how much leverage construction firms have when it comes to planning ahead.
Explore how OB3 is influencing real estate and construction decisions today, including:
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How construction firms are managing cash flow in a sustained high-rate environment
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Why OB3 has increased the value of proactive planning
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How enhanced bonus depreciation and cost segregation can accelerate deductions
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Why timing matters for energy-efficiency deductions like Section 179D
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How real-time financial insight supports better project decisions
Insights
Looking for the latest advice about the One Big Beautiful Bill Act and how it relates to you? You're in the right spot.