One Big Beautiful Bill Act

​The recently passed One Big Beautiful Bill Act (OBBBA) represents a significant overhaul of U.S. tax policy, with wide-ranging implications for individuals, businesses, and the federal budget. Signed into law by President Trump on July 4, 2025, the legislation extends many provisions of the 2017 Tax Cuts and Jobs Act (TCJA) and introduces new tax measures. Here's a summary of its key tax implications:journalofaccountancy.com+4kiplinger.com+4en.wikipedia.org+4

🧾 Individual Tax Provisions

• Permanent TCJA Tax Rates: The bill makes the TCJA's individual tax rates permanent, including the increased standard deduction, which is set at $15,750 for single filers and $31,500 for married couples filing jointly, adjusted for inflation. journalofaccountancy.com
  
• SALT Deduction Cap Increase: The state and local tax (SALT) deduction cap is temporarily raised from $10,000 to $40,000, with inflation adjustments through 2029. This cap reverts to $10,000 starting in 2030. journalofaccountancy.com
  
• Child Tax Credit Expansion: The child tax credit increases to $2,200 per child beginning in 2025, with the $1,400 refundable portion made permanent and adjusted for inflation. journalofaccountancy.com+1en.wikipedia.org+1
  
• Tax Relief for Seniors: Starting in the 2026 tax year, nearly 90% of Social Security beneficiaries will be exempt from paying income taxes on their benefits. Additionally, seniors aged 65 or older earning under $75,000 annually can claim a $6,000 deduction, with a $12,000 deduction for qualifying married couples. the-sun.com
  
• Exemption for Tips and Overtime: The bill introduces a temporary deduction of up to $25,000 for qualified tips and overtime pay, effectively exempting this income from taxation for eligible workers. journalofaccountancy.com+1vox.com+1
  

🏢 Business and Corporate Tax Changes

• Corporate Tax Provisions: The legislation extends and modifies several corporate tax provisions from the TCJA, including adjustments to the taxation of foreign income and the reinstatement of the EBITDA limitation under Section 163(j) for interest deductions. journalofaccountancy.com
  
• Advanced Manufacturing Credit: An advanced manufacturing investment credit is increased from 25% to 35% for property placed in service after December 31, 2025, aiming to boost domestic manufacturing. journalofaccountancy.com
  
• Opportunity Zones and New Markets Tax Credit: The bill makes both the Opportunity Zones program and the New Markets Tax Credit permanent, with modifications to target investments more effectively. journalofaccountancy.com
  

🌱 Energy and Environmental Tax Implications

• Reduction of Clean Energy Incentives: The OBBBA significantly cuts back on clean energy tax incentives introduced under the Inflation Reduction Act, including the elimination of certain renewable energy tax credits and the repeal of electric vehicle subsidies. en.wikipedia.org+1akingump.com+1