One Big Beautiful Bill

Here’s a summary of key provisions in the One Big Beautiful Bill Act (also known as OBBB/OBBBA), signed into law July 4, 2025.

✅ Major Tax & Business Changes

• Makes permanent many of the individual tax cuts from the Tax Cuts and Jobs Act (TCJA) — e.g., the current brackets and higher standard deduction.

  
  

• Raises standard deductions for 2025 and 2026: for married filing jointly e.g., $31,500 in 2025 and $32,200 in 2026.

  
  

• Expands the state and local tax (SALT) deduction cap: up to about $40,000 for some taxpayers (where previously it was $10,000).

  
  

• New tax breaks for certain workers: e.g., expanded deductions for overtime pay and tip income (subject to income-limits).

  
  

• Business tax provisions: e.g., making permanent 100% first-year bonus depreciation, enhancements to research & development deductions, etc.

  
  

• Investment & community development: Changes to the Opportunity Zones program (e.g., in rural areas) to encourage investment.

  
  

🏠 Clean Energy / Vehicle & Credit Changes

• Some clean vehicle credits (for new, used, commercial clean vehicles) will expire for vehicles acquired after September 30, 2025.

• Other energy credits and clean-energy incentives are modified or phased-out.

  
  

👪 Family, Dependents, and Employee Benefits

• The adoption tax credit becomes partially refundable (up to about $5,000, indexed) starting for tax years after Dec 31 2024.

  
  

• Employer-provided childcare tax credit increased: advanced for qualified small businesses, and dependent care flexible spending account limits increased.

  
  

• Changes for recognizing Indian tribal governments in determining “special needs” for children for adoption credit purposes.