On July 4, 2025, the One Big Beautiful Bill Act (OBBB) was signed into law, a sweeping piece of tax and economic legislation that will have wide-ranging impacts on individuals, businesses, and estates. As your trusted advisors, we’re here to break down what this historic bill means for you, your family, and your business.

Key Highlights of the OBBB

Below are a few of the key highlights from the bill. While this list is not exhaustive, we will work on providing more detailed analysis of the sections that will affect you.

1. Expanded Business Incentives

• Section 179 Expansions: The deduction limit has been significantly increased, allowing small- to mid-sized businesses to immediately expense larger capital investments.
• Bonus Depreciation Extended: The 100% bonus depreciation provision has been reinstated and extended from January 20, 2025, through January 1, 2031, enabling faster cost recovery on qualifying property.
• Research & Development (R&D): The bill reverses prior amortization rules and restores immediate expensing for domestic R&D costs, critical for innovation-focused companies.
• Enhancements of IRC 1202 Stock – Expanded benefits when selling small business C Corp stock to exclude most of the gain from the sale.
• IRC 199A – made permanent, which will allow for many new planning opportunities.

2. Individual Tax Relief

• Child Tax Credit (CTC): Expanded eligibility and increased refundable amounts could significantly reduce families’ tax burdens starting this tax year.
• Standard Deduction Boost: An inflation-adjusted increase to the standard deduction means fewer taxpayers will need to itemize, streamlining return prep.
• Increase in SALT deduction – increased the SALT deduction amount to $40,000 through 2028, subject to certain limitations.
• Tips and Overtime Pay – are non-deductible up to certain limitations.

3. Estate & Trust Provision

• Unified Credit: Adjustments to the estate and gift tax exemption threshold provide new planning opportunities—especially for high-net-worth individuals considering lifetime gifts.

What Should You Do Now?

Tax Planning is More Critical Than Ever. We recommend reviewing your current tax strategies in light of these changes. In particular:

• Business owners should revisit depreciation schedules and capital investment plans.
• Revisit the IRC 199A deduction now that it is permanent to consider changes to entity structuring or compensation to increase the deduction.
• Families may benefit from updated projections on tax credits and income phaseouts in order to adjust withholdings or estimated tax payments.
• High-net-worth individuals should explore new trust and gifting strategies in Q3 and Q4.

How We Can Help

At YHB, our team is already analyzing the new law’s nuances and preparing guidance tailored to your unique situation. Whether you need immediate assistance amending a return or long-term strategic planning, we’re here to support you every step of the way.

Stay tuned for client webinars, updated tax guides, and one-on-one planning sessions.