Andersen Global
One Big Beautiful Bill Act Insights
How Does OBBBA Impact You & Your Business?
U.S. President Donald Trump signed the One Big Beautiful Bill Act into law on July 4, 2025. This sweeping legislation reshapes key areas of the U.S. economy, spanning tax policy, defense spending, social programs, energy, and immigration.
The One Big Beautiful Bill Act (OBBBA) restores immediate domestic research and development (R&D) expensing.
The new law adds back depreciation, depletion, or amortization to the calculation of adjusted taxable income (ATI).
The legislation creates opportunities and removes the fear of expiring provisions to help preserve family wealth.
Now is the time for finance and tax leaders to assess the impact and develop proactive strategies.
The OBBBA includes significant tax changes impacting individuals, businesses, estates and trusts.
Further OBBBA Insights
For Individuals
- Lower Tax Rates: Makes the lower TCJA income tax rate schedules for individuals permanent.
- SALT Cap: Increases the state and local tax (SALT) deduction to $40,000 (adjusted) for 2025 to 2029, begins phasing out for taxpayers with incomes above $500,000 (adjusted).
- Alternative Minimum Tax: Permanently maintains increased AMT exemption amounts and phase-out thresholds.
- Floor on Charitable Deduction: Imposes a 0.5% floor on charitable contributions for individuals and permanently extends the increased contribution limitation (60%) for cash gifts made to qualified charities.
For Businesses
- Business Interest Expense Limitation (163(j)): Permanently reinstates the EBITDA (earnings before interest, taxes, depreciation, and amortization) limitation for the calculation of the deduction for taxable years beginning after December 31, 2024.
- Opportunity Zones: Establishes a permanent Opportunity Zone (OZ) policy building off current law. Creates a rolling 10-year, OZ designations beginning on January 1, 2027.
- Clean Energy Credits: Accelerates the termination dates of various clean energy credits included in the Inflation Reduction Act.
Other
- QSBS Exclusion: Changes the Sec. 1202 qualified small business stock (QSBS) exclusion
- Qualified Business Income: Makes permanent the Sec. 199A deduction for qualified business income.
- Bonus Depreciation: Permanently reinstates 100% bonus depreciation for property acquired after January 19, 2025.
Additional OBBBA Resources
Beginning in tax year 2026, information returns furnished to employees will separately report certain tips.
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IRAs for children who have not reached age 18 with specific tax rules, contribution limits, and withdrawal options.
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Businesses are likely to encounter a unique combination of new opportunities, changes, and challenges.
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The article was originally featured in Tax Notes in August 2025.
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The webcast focuses on the substantial changes the One Big Beautiful Bill Act.
Read More »Opportunities to utilize high estate and gift tax exclusion amounts continue.
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Publicly traded corporations are limited to a $1 million deduction for covered employees.
Read More »A strategic review of your tax accounting methods with Andersen can uncover multiple opportunities.
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Starting in 2026, employers will no longer be able to take a tax deduction for the cost of providing an on-site eat
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The OBBBA added several new programs and rules that are beneficial for the real estate industry.
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With the One Big Beautiful Bill Act (OBBBA) reinstating 100% bonus depreciation, the potential tax savings can be s
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