One Big Beautiful Bill: Detailed Tax Provisions and What It Means for Businesses and Individuals
Congress’ H.R. 1 “One Big Beautiful Bill” (OBBB) overhauls and extends dozens of tax provisions. Below we highlight the key revenue—Title XI, Subtitle A (Family & Workers) and Subtitle B (Rural America & Main Street)—that every taxpayer and business should know.
Subtitle A – Make American Families and Workers Thrive Again
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Extension of TCJA Rate Structure
Locks in 2017’s lower brackets indefinitely, avoiding a 2026 reversion to higher pre-TCJA rates. -
Standard Deduction Increase
Permanently maintains 2025 levels (single: $15,750; head-of-household: $23,625; married filing jointly: $31,500). -
Enhanced Child Tax Credit
Makes the larger TCJA child credit permanent (currently $2,200 per child under 17, inflation-adjusted). -
Preservation of the QBI Deduction
Keeps the 20% pass-through deduction under Section 199A with permanent enhancements. -
Itemized Deduction Limits
Continues mortgage interest and casualty-loss rules, and retains the federal SALT cap at $10,000 (before the temporary increase). -
Qualified Tip Income Deduction
Above-the-line deduction for service-industry tips—up to $25,000 per taxpayer (2025–2028). -
Qualified Overtime Pay Deduction
Above-the-line deduction for overtime pay—up to $12,500 per taxpayer (2025–2028). -
Enhanced Senior Standard Deduction
Additional standard deduction for taxpayers age 65+—up to $6,000 for 2025–2028. -
Car Loan Interest Deduction
Above-the-line write-off for interest on qualifying vehicle loans—up to $10,000 per return (2025–2028). -
Temporary SALT Cap Increase
Boosts the federal SALT deduction limit from $10,000 to $40,000 (per return) for 2025–2028. -
Expanded Adoption Credit
Raises income limits and increases the refundable portion of qualified adoption-expense credits. -
Charitable Deduction for Non-Itemizers
Restores a partial above-the-line deduction for cash gifts, even if you don’t itemize. -
Employer-Paid Student Loan Exclusion
Makes permanent the exclusion for employer student-loan repayments (inflation-adjusted). -
Children’s “Trump” Savings Accounts
Launches tax-favored children’s accounts with a pilot contribution program through 2026.
Subtitle B – Make Rural America and Main Street Grow Again
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100% Bonus Depreciation
Extends full bonus depreciation for qualified rural and small-business property. -
Immediate R&D Expensing
Restores immediate expensing of domestic research and experimental outlays. -
Easier Business Interest Deductions
Reverts to an EBITDA-based interest limit, easing caps for small farms and businesses. -
Continued FDII & GILTI Relief
Maintains the FDII deduction and GILTI relief through 2031. -
Extended BEAT Exemptions
Keeps BEAT exemption amounts in place and raises de minimis thresholds. -
Special Production Depreciation
Adds a targeted depreciation allowance for qualified production property. -
Opportunity Zone Enhancements
Renews and expands Opportunity Zone incentives for rural projects. -
Higher Section 179 Limits
Raises expensing limits to benefit Main Street businesses and farms.
Planning Tips for OBBB Provisions
- Retroactive 2025 Benefits
File your 2025 return to claim tip and overtime deductions, the senior bump, boosted SALT cap, vehicle-loan interest write-off, and other retroactive relief. - Permanent TCJA Strategies
Lock in lower brackets and QBI deductions with long-term income projections and entity planning. - Rural & Small-Business Investments
Accelerate equipment and property purchases in 2025 to leverage bonus depreciation, Section 179 enhancements, and other rural credits.
Partner with Shahbaz & Associates CPAs
Implementing these complex provisions into your year-end planning can be challenging. At Shahbaz & Associates CPAs, we:
- Track H.R. 1’s evolving regulations in real time
- Model personalized scenarios to optimize credits, deductions, and depreciation
- Deliver proactive, year-round tax strategy
Ready to capitalize on OBBB’s benefits? Schedule your consultation today.