A year ago, the tax code looked different. The TCJA provisions were expiring. The SALT cap sat at $10,000. Bonus depreciation was phasing down. Then the One Big Beautiful Bill Act (Public Law 119-21) landed on July 4, 2025, and rewired significant portions of the Internal Revenue Code in a single stroke.
If it’s been a while since the details were front of mind, here’s a clean summary of what actually moved.
What’s Permanent Now
The OBBBA’s biggest impact was making TCJA provisions permanent that were scheduled to sunset on December 31, 2025. These aren’t new rules. They’re the same rates and thresholds CPAs have been working with since 2018, now locked into the code indefinitely (IRS OBBBA provisions).
The seven individual income tax rates (10% through 37%) are permanent. So is the higher standard deduction ($15,750 single / $31,500 joint for 2025). The Qualified Business Income deduction for pass-through entities stays at 20%. AMT exemption levels remain elevated. And the estate and gift tax exemption is permanently indexed, rising to $15 million per individual starting in 2026.
For anyone who’s been filing returns under TCJA rates for the past seven years, nothing about the math changes. What changed is that it’s no longer temporary.
Three Business Provisions Worth Knowing
Three business tax provisions that had been eroding got restored:
| Provision | What Happened | Effective |
| Bonus depreciation | Restored to 100% for qualified property (had dropped to 60% for 2024) | Property placed in service after Jan 19, 2025 |
| R&E expensing (Sec. 174) | Immediate deduction restored (had been capitalized over 5 years since 2022) | Tax years beginning after Dec 31, 2024 |
| Business interest (Sec. 163(j)) | Limitation reverts to 30% of EBITDA (had been restricted to EBIT) | Tax years beginning after Dec 31, 2024 |
Section 179 expensing also increased to $2.5 million with a $4 million investment limit. These provisions don’t require any new knowledge. They restore rules that were in place before the TCJA phase-downs took effect (Tax Foundation).
New Deductions That Didn’t Exist Before
The OBBBA also created four entirely new above-the-line deductions, all temporary through 2028:
Qualified tip income: Up to $25,000 for workers in occupations that customarily received tips before December 31, 2024. The IRS proposed regulations identifying nearly 70 qualifying occupations.
Overtime compensation: Up to $12,500 for single filers ($25,000 joint) for qualified overtime wages.
Auto loan interest: Up to $10,000 for interest on loans used to purchase U.S.-assembled vehicles.
Additional senior deduction: Up to $6,000 for single filers ($12,000 joint) for taxpayers age 65 and older.
All four phase out beginning at $150,000 modified AGI ($300,000 joint). All four expire after 2028. They’re available regardless of whether the taxpayer itemizes.
During the first filing season, the tip income deduction drew the most attention. Treasury issued proposed regulations (REG-110032-25) identifying nearly 70 qualifying occupations, but the line between “customarily tipped” and occasionally tipped isn’t always clean. The overtime deduction raised its own questions: 2025 Forms W-2 don’t include a dedicated box for qualified overtime compensation, so verification requires employer records rather than standard tax documents.
The SALT Cap: Bigger but Still Temporary
The state and local tax deduction cap rose from $10,000 to $40,000 for tax years 2025 through 2029. It phases out for taxpayers with modified AGI above $500,000 and increases by 1% annually through the window. In 2030, it reverts to $10,000.
For CPAs in high-tax states, this is the provision that generated the most immediate conversations last filing season. The five-year window is wide enough to matter but short enough that the sunset date is already on the radar.
Two New Items to Be Aware Of
Trump Accounts. A new tax-advantaged savings vehicle for children under 18, created under IRC Section 530A. Contributions began July 4, 2026. Annual cap of $5,000. Eligible children born 2025 through 2028 receive a one-time $1,000 federal deposit. Not a topic most CPAs will encounter routinely, but it’s generating questions because the name draws attention.
Clean energy credit changes. The New Clean Vehicle Credit (Section 30D) ended for vehicles placed in service after September 30, 2025. The technology-neutral clean vehicle credit replaced it with different eligibility rules and phase-out schedules.
The Short Version
Most of what the OBBBA did was make existing rules permanent. The rates, deductions, and thresholds CPAs have been working with since 2018 aren’t going anywhere. The new temporary deductions (tips, overtime, auto loan interest, senior standard) created some additional complexity through 2028, and the SALT relief runs through 2029.
The practical takeaway: anyone who’s been competent in post-TCJA tax law is still competent. The core knowledge hasn’t shifted. What changed is a handful of new provisions with defined expiration dates and a set of formerly temporary rules that no longer carry sunset risk. Fewer moving parts, not more.