Key Provisions of OBBA (One Big Beautiful Act)

Pink Key

Here’s a quick breakdown of some of the major tax changes under the OBBBA:

These will be covered in future blogs.

Provision	Description
Permanent TCJA Features	Tax brackets (up to 37%), standard deduction, and QBI deduction made permanent
Estate & Gift Tax Exemption	Increased to $15 million per person starting in 2026, indexed for inflation
State & Local Tax (SALT) Cap	Raised to $40,000 starting 2025 (phases down to $10,000 by 2030), with a phaseout for higher incomes
Bonus Depreciation (Sec. 168(k))	Restored to 100% for qualifying property placed in service from Jan 19, 2025 through 2029
Deductions for Tips & Overtime	Up to $25,000 for tips and up to $12,500 ($25,000 joint) for overtime, phased out for higher incomes, effective 2025–2028
R&D Expense Deductions	Full expensing for domestic R&E starting 2025; retroactive for many small businesses for prior years
Other Business & Investment Changes	Includes features like expanded QSBS exclusions, adjusted interest deduction rules, new reporting thresholds for 1099 forms, and more
Child Tax Credit Bump (Later)	Good news for parents! The child tax credit goes up to $2,200 per kid, but not until 2026. You might see a tiny bit more in your paycheck then if you claim your kids on your W-4, or get an extra $200 per child back at tax time if you don't.
Things That Aren't Really Changing (Even Though You Hear About Them): Most of the huge budget impacts you hear about in the news are just extensions of tax rules that have been around for the last 8 years. So, you won't feel a difference with these.	Lower tax rates Bigger standard deduction Qualified business income deduction Rules that keep most people out of the Alternative Minimum Tax