On July 4, President Donald Trump signed the One Big Beautiful Bill Act (OBBBA) into law, following narrow votes in both chambers of Congress, according to Forbes.

While debate over its long-term economic impact continues, the bill enacts sweeping changes to both individual and business tax provisions, many of which extend or revise key elements of the 2017 Tax Cuts and Jobs Act.

Forbes reported that tips will given more favorable tax treatment compared to other incomes. Meanwhile, individuals with real estate and certain business interests would likely qualify for a 20 percent reduction in their income, but professionals such as doctors, lawyers and architects, among other professions, are excluded.

The bill increases the estate and gift tax exemption to $15 million per individual, indexed for inflation. It also makes the 20 percent qualified business income deduction (Sec. 199A) permanent and expands the income phase-in ranges. The alternative minimum tax exemption and bonus depreciation are also made permanent.

The bill raises the SALT deduction cap to $40,000 through 2028 and increases the standard deduction (now $15,750 for single filers and $31,500 for joint filers in 2025). Other provisions include a refundable child tax credit, above-the-line deduction for tips and overtime, expanded eligibility for ABLE and Trump accounts, and changes to the mortgage interest deduction and miscellaneous itemized deductions. 

Business changes include and increase to Sec. 179 expensing limits, immediate expensing of domestic R&D costs, and new credit enhancements for advanced manufacturing and employer-provided child care. The bill also ends several clean energy tax incentives beginning in 2025 and 2026. 

For a comprehensive list of the tax provisions in the bill, the Journal of Accountancy enumerates the different important tax provisions in the bill.