by Blair Butters | Aug 14, 2025 | General Tax and Accounting Information, IRS, Tax Credits, Tax Planning
What is the Big Beautiful Bill? Let’s cut through the noise. In July 2025, Congress passed a sweeping tax package officially known as the One Big Beautiful Bill (OBBB), later renamed H.R. 1. Whether you’re a homeowner, small business owner, electric vehicle driver, or someone who just wants to avoid IRS headaches, there are several tax changes that could directly impact your bottom line. Here’s what you need to know. Quick Highlights: OBBB 2025 Tax Changes For Individuals Tax Rates – 37% top rate made permanent SALT Cap – Raised to $40,000 in 2025 (with income limits) New Deductions (2025-2028) – Car loan interest (new U.S.-assembled vehicles), tip income, and overtime pay Senior Deduction – Up to $6,000 ($12,000 for couples) for those 65+ Home Energy Credits End – Must install by Dec. 31, 2025 EV Credits End – Must purchase and take delivery by Sept. 30, 2025 For Small Businesses QBI Deduction – Up to 20% made permanent Bonus Depreciation – 100% expensing made permanent Section 179 – Limit increased to $2.5M Energy-Efficient Deduction Ends – Must complete by June 30, 2026 1099 Threshold – Increases to $2,000 starting in 2026 What’s In It for Individuals and Families Tax Rates The OBBB permanently extended the tax rates passed in the Tax Cuts and Jobs Act (TCJA – 2017) with a top marginal tax rate of 37 percent. Without passage of the OBBB, marginal tax rates would have reverted to pre-TCJA rates, with a top marginal tax bracket of 39.6 percent starting in tax year 2026. SALT Limitations Increased The limitation on individual deductions for certain state and...
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