The One Big Beautiful Bill Act (OBBBA), signed into law in July 2025, represents a landmark overhaul of federal tax policy in the United States and solidifies key elements of President Donald Trump’s economic agenda. Major provisions include permanently extended individual tax rates, an increased standard deduction ($15,750 single/$31,500 married, indexed for inflation), and a boosted cap on state and local tax deductions (SALT) to $40,000 for qualifying taxpayers through 2029. The act also introduces beneficial deductions for tips, overtime, and auto loan interest, expands senior and child tax credits, and reauthorizes critical business incentives like 100% bonus depreciation and higher Section 179 expensing limits. These changes offer significant planning opportunities for individuals and businesses, but also require careful compliance with new documentation and reporting rules.
References:
https://tax.thomsonreuters.com/blog/impact-of-the-one-big-beautiful-bill-act
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