On July 4th, President Trump signed into law H.R. 1 — the One Big Beautiful Bill Act (“BBB”), a landmark piece of legislation that reshapes key areas of the Internal Revenue Code. The BBB extends, modifies, and makes permanent many provisions first introduced under the Tax Cuts and Jobs Act (TCJA), while also introducing entirely new rules that will impact businesses and high-net-worth individuals and families for years to come.
A big thanks to Anchin, the respected CPA and advisory firm, for their thorough article on this important legislation. Their insights helped crystallize many of the key takeaways I’ve summarized below.
Provisions Made Permanent or Extended
Income Tax Rates— The BBB makes current income tax rates permanent.
Standard Deduction— Permanently increased to $15,750 (single), $23,625 (head of household), and $31,500 (married filing jointly), indexed annually for inflation.
QBI Deduction— The 20% deduction for Qualified Business Income (Section 199A) is now permanent.
Estate Tax Exemption— Increased to $15 million starting in 2026, indexed for inflation.
Mortgage Interest— Deduction on the first $750,000 of acquisition debt is permanently extended; interest on home equity debt remains non-deductible.
Bonus Depreciation— Permanently extended and increased to 100% for property acquired after January 19, 2025.
New Markets Tax Credit— Made permanent, providing continued incentives for investment in low-income communities.
Excess Business Loss Limitation — Now permanent, limiting deductions to $250,000 (single) / $500,000 (married) and indexed annually.
Modified or Enhanced Provisions
SALT Cap— Increased from $10,000 to $40,000 through 2029, adjusted for inflation. Phases down above $500,000 of MAGI.
Section 179 Expensing— Limit raised to $2.5 million, phase-out at $4 million.
Advance Manufacturing Credit— Jumped from 25% to 35% starting in 2026.
Opportunity Zones— A new permanent program begins after 2026, separate from the original TCJA structure.
QSBS Gains— Now offers scaled exclusions (50% after 3 years, 75% after 4, 100% after 5), with the exclusion cap raised from $10 million to $15 million.
Business Interest — Adjusted taxable income for the 30% limit now permanently calculated without depreciation/amortization adjustments, favoring taxpayers.
New Tax Provisions Worth Noting
No Tax on Tips— Deduction up to $25,000 for tips received by workers in customary tip industries, phasing out at $150,000 MAGI ($300,000 joint).
No Tax on Overtime— Deduction up to $12,500 ($25,000 joint) for qualified overtime, subject to similar phase-outs.
´Bonus Depreciation on Qualified Production Property — Full expensing for certain U.S.-based production facilities placed in service before 2031.
- The Big Beautiful Bill (BBB): A Sweeping Tax Overhaul Signed into Law - July 19, 2025
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