What the “One Big Beautiful Bill Act” Means for You  

On July 4, 2025, President Trump signed the One Big Beautiful Bill Act (OBBBA) into law — a massive overhaul with long-term implications for taxes, business planning, and wealth strategies. 

While the bill is politically charged and 869 pages long, our focus is on the details that matter most to you. Here’s what you need to know: 

1. 2017 Tax Cuts Are Now Permanent 

Many of the tax cuts from the 2017 Tax Cuts and Jobs Act (TCJA) were originally set to expire in 2026 — now they’re permanent: 

• Individual tax brackets remain unchanged, avoiding automatic tax increases across income ranges. 

• The higher standard deduction is locked in. 

• The lifetime gift and estate tax exemption is now permanently set at $15 million per person. 

• The 20% deduction for qualified business income (QBI) is now a permanent feature of the tax code. 

What this means for you: 
This provides long-term clarity for estate and tax planning. With the $15M estate exemption now permanent, clients with substantial estates should review gifting strategies, trust structures, and legacy planning to take full advantage. Business owners with pass-through entities (LLCs, S-Corps) can continue using the QBI deduction to reduce taxable income — a meaningful savings opportunity.

2. Temporary Boost to State and Local Tax (SALT) Deductions 

• The SALT deduction cap has increased from $10,000 to $40,000 starting in 2025. 

• This increase begins phasing out for individuals with incomes over $500,000. 

• The higher deduction limit will sunset in 2030, gradually reverting to $10,000. 

What this means for you: 
High-income households in states with high property or income taxes (such as NY, CA, NJ, CT, IL) may see meaningful short-term tax relief. If you itemize deductions and exceed the $500K income threshold, consider timing charitable giving and income recognition to maximize deductions during this temporary window. 

3. Clean Energy Incentives Scaled Back 

• Solar and wind project tax credits are being phased out sooner, with tighter deadlines and ownership restrictions. 

• Projects using materials or funding from Prohibited Foreign Entities (PFEs) may lose eligibility. 

• The Electric Vehicle (EV) tax credit for new vehicles ends September 20, 2025, and the credit for used EVs also disappears after that date. 

What this means for you: 
Investors in renewable energy should reassess exposure, especially in solar and wind sectors. We may recommend monitoring any private investments in clean energy funds, partnerships, or real estate projects to ensure they’re not affected by the updated credit rules. For those planning to buy electric vehicles now is the time to act before credits vanish. 

4. New Deductions for Specific Types of Income 

Several targeted deductions were introduced for 2025–2028, including: 

• Auto loan interest: Up to $10,000/year for U.S.-assembled vehicle purchases (no itemizing required). 

• Tip income: Workers can deduct up to $25,000 if you make less than $150,000. 

• Overtime pay: Deduct up to $12,500, also phased out above $150,000. 

• Seniors 65+: Deduct up to $6,000 if income is below $75,000 (or $150,000 for couples). 

What this means for you: 
While these deductions are less impactful for higher earners, clients with family members (e.g., children or grandchildren in the workforce, or retired parents) could benefit. For business owners, the auto loan deduction may be a lever for optimizing vehicle purchase strategies under Section 179 or bonus depreciation rules.

5. Major Tax Incentives for Business Investment 

The bill offers several business tax changes: 

• 100% expensing for domestic R&D costs or capital equipment through 2029. 

• Interest expense deductibility improved: now based on 30% of EBITDA (instead of EBIT), allowing more deductions for highly leveraged businesses. 

What this means for you: 
Business owners now have a strong incentive to invest in property, plant, and equipment or increase R&D spending, with immediate tax benefits. This also opens up opportunity to revisit debt strategy — businesses carrying significant depreciation or amortization (such as real estate or manufacturing firms) could benefit meaningfully from the shift to EBITDA-based interest limits.

Final Thoughts 

The One Big Beautiful Bill Act introduces a number of meaningful changes — particularly in the areas of tax policy, business investment, and estate planning. Our team is already incorporating these developments into our clients and financial planning strategies to ensure they are well-positioned. 

If you’re not yet working with us, this is the kind of forward-looking approach we bring to every relationship. Whether you’re a business owner, investor, or retiree, our team can help you build a financial strategy that not only reflects today’s legislation but also adapts to whatever comes next.