Landmark Tax Bill Signed Into Law: What Businesses and Individuals Need to Know

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President Trump signed the One Big Beautiful Bill Act (OBBBA) into law on July 4, 2025, following its passage by Congress on July 3. This sweeping legislation includes significant changes to the federal tax code, making permanent several provisions from the 2017 Tax Cuts and Jobs Act (TCJA), modifying business and individual tax rules, scaling back clean energy incentives, and altering international tax provisions. 

The legislation includes key provisions that affect individuals, businesses, and estates. Below is a high-level overview of what is included in the bill. 

 

Key Provisions of the OBBBA 

TCJA Extensions Made Permanent 

  • Bonus Depreciation: 100% bonus depreciation returns for qualified property placed in service beginning January 20, 2025. 
  • Section 199A Deduction: The qualified business income (QBI) deduction for pass-through entities is made permanent, with adjusted income thresholds. 
  • Standard Deduction and Tax Brackets: Permanently indexed for inflation. 
  • Estate and Gift Tax Exemption: Increased to $15 million per individual and made permanent. 

 

Business Tax Changes 

  • Interest Deduction Limitation: Reverts to an EBITDA-based calculation. 
  • R&D Expensing: Domestic research costs may now be fully expensed; certain previously capitalized amounts (2022–2024) may be accelerated. 
  • Corporate Charitable Giving: A new 1% floor limits the deductibility of corporate charitable contributions. 

 

Individual Tax Updates 

  • SALT Cap: Increased to $40,000 for joint filers through 2029, with phase-outs for high earners. 
  • Child Tax Credit: Increased amount, with partial refundability. 
  • Above-the-Line Deductions: Temporary deductions allowed for certain tipped and overtime wages. 
  • “Trump Accounts”: New tax-advantaged savings accounts for children, including a government-funded contribution for qualifying births. 

 

International Tax Changes 

  • Modifications to GILTI, FDII, and Foreign Tax Credit calculations. 
  • BEAT rate set permanently at 10.5%, with limited exceptions. 
  • Restoration of Downward Attribution rules, which may impact controlled foreign corporation (CFC) reporting obligations. 

 

Clean Energy Incentives Modified 

  • Many clean energy credits introduced under the Inflation Reduction Act are scaled back or set to expire between now and 2027. 
  • Certain credits (e.g., EVs, solar, wind, hydrogen, carbon capture) face new eligibility criteria or reduced availability. 
  • Transferability remains an option for some credits. 

Note: Phase-out and cut-off dates vary by credit. Additional guidance is expected. 

 

What’s Next 

Brady Martz will continue to provide timely updates and deeper analysis on how these changes may impact tax planning strategies.