On July 4, 2025, President Trump signed into law in the One Big Beautiful Bill Act, which the House approved in a 218-214 vote, after the Senate approved it by a 51-50 vote, with Vice President JD Vance casting the tie-breaking vote. The bill extends many of the expiring provisions from the Tax Cuts and Jobs Act (TCJA), P.L. 115-97. It also addresses other tax priorities of the Trump administration, including providing deductions to eliminate income taxes on certain tips and overtime pay. There are a LOT of changes. Below you will see a quick summary of the most important changes.

• QBI deduction: The bill makes the Sec. 199A qualified business income (QBI) deduction permanent and keeps the deduction rate at 20%. It also expands the Sec. 199A deduction limit phase-in range for SSTBs and other entities subject to the wage and investment limitation. The bill also introduces an inflation-adjusted minimum deduction of $400 for taxpayers who have at least $1,000 of QBI from one or more active trades or businesses in which they materially participate.
• Bonus depreciation: The bill permanently extends the Sec. 168 additional first-year (bonus) depreciation deduction. The allowance is increased to 100% for property acquired and placed in service on or after Jan. 19, 2025.
• Special depreciation allowance for qualified production property: The bill allows an additional first-year depreciation deduction equal to 100% of the adjusted basis of “qualified production property.”
• Sec. 179 expensing: The maximum amount a business may expense is increased to $2.5 million, with the phaseout threshold raised to $4 million, both indexed for inflation after 2025.
• R&D expenditures: The bill allows taxpayers to immediately deduct domestic research or experimental expenditures paid or incurred in tax years beginning after Dec. 31, 2024. Small business taxpayers with average annual gross receipts of $31 million or less will generally be permitted to apply this change retroactively to tax years beginning after Dec. 31, 2021. And all taxpayers that made domestic research or experimental expenditures after Dec. 31, 2021, and before Jan. 1, 2025, will be permitted to elect to accelerate the remaining deductions for those expenditures over a one- or two-year period.
  EBL permanency: The bill makes the Sec. 461(l) excess business loss (EBL) limitation permanent, which is currently set to expire at the end of 2028. It would also modify the limitation, subjecting previously disallowed EBLs to retesting in the subsequent year.
• Business interest deduction: For 2025–2029, the Sec. 163(j) limitation is calculated using earnings before interest, taxes, depreciation and amortization (EBITDA), rather than earnings before interest and taxes (EBIT).
• Certain fringe benefits as: Expenses incurred by a tax-exempt organization under the bill for qualified transportation fringe benefits will be treated as unrelated business taxable income UBTI. There is an exception for church organizations and this is effective for amounts paid or incurred after Dec. 31, 2025. 
• Third-party network transaction reporting threshold: The bill would revert to the prior rule for Form 1099-K, Payment Card and Third Party Network Transactions, reporting, under which a third-party settlement organization (TPSO) would not be required to report unless the aggregate value of third-party network transactions with respect to a participating payee for the year exceeds $20,000 and the aggregate number of such transactions with respect to a participating payee exceeds 200.
• Form 1099 reporting threshold: The bill would increase the information reporting threshold for certain payments to persons engaged in a trade or business and payments of remuneration for services to $2,000 in a calendar year (from $600), with the threshold amount to be indexed annually for inflation in calendar years after 2026.
  
• Renewed OZs: A new round of opportunity zones (OZs) is created for 2027–2033, with revised eligibility and incentives, including special rules for rural areas.