Navigating the One Big Beautiful Bill: Key Tax Changes Coming in 2025 and Beyond

Tax changes take effect this year and next… Thanks to the massive new federal legislation commonly referred to as the "One Big Beautiful Bill," which President Trump signed as promised on July 4.

There are over 100 tax sections in the OBBB. The changes permanently extend most tax provisions in the 2017 Tax Cuts and Jobs Act that were slated to expire on Dec. 31 and enhance some of them, provide new tax breaks, repeal clean-energy credits in the 2022 Inflation Reduction Act, and much more.

Key changes include:

• Permanent extension of individual tax rates
• Enhanced standard deduction
• New car loan interest deduction
• No tax on tips (up to limits)
• No tax on overtime (up to limits)
• Increased SALT deduction cap
• New senior bonus deduction
• Enhanced child tax credits
• Termination of EV and clean energy credits
• Permanent 100% bonus depreciation for businesses
• Permanent QBI deduction

These changes represent the most significant tax reform since 2017. Contact your tax professional to understand how these changes affect your specific situation.