One Big Beautiful Bill Act
- KHS & Company
- Jul 22
- 7 min read
Updated: Aug 18
Below is a summary of individual and business provisions. Many of the clean energy credits have been rolled back and phased out over the next year. Additional guidance is expected on some of these new provisions so the information is subject to change. For full details: https://www.irs.gov/pub/irs-drop/rp-24-40.pdf
Individual Provisions
General Description | OBBBA Summary | Effective Date |
Individual Income Tax Rates |
| Taxable Years Beginning After Dec. 31, 2025 |
Alternative Minimum Tax |
| Taxable Years Beginning After Dec. 31, 2025 |
Standard Deduction |
| Taxable Years Beginning After Dec. 31, 2024 |
Temporary Senior Deduction |
| Taxable Years Beginning After Dec. 31, 2024 through tax years beginning before Jan. 1, 2029 |
Itemized Deduction Limitation |
| Taxable Years Beginning After Dec. 31, 2025 |
Miscellaneous Itemized Expense Deductions |
| Taxable Years Beginning After Dec. 31, 2025 |
Mortgage Interest Deduction |
| Taxable Years Beginning After Dec. 31, 2025 |
Car Loan Interest |
| Indebtedness incurred after Dec. 31, 2024 |
SALT Cap |
| Taxable Years Beginning After Dec. 31, 2024 |
Wagering Losses |
| Taxable Years Beginning After Dec. 31, 2025 |
Casualty Losses |
| Taxable Years Beginning After Dec. 31, 2025 |
Individual Charitable Deductions |
| Taxable Years Beginning After Dec. 31, 2025 |
Qualified Business Income Deduction |
| Taxable Years Beginning After Dec. 31, 2025 |
Moving Expense Deduction |
| Taxable Years Beginning After Dec. 31, 2025 |
Tip Taxation |
| Taxable Years Beginning After Dec. 31, 2024 |
Overtime Taxation |
| Taxable Years Beginning After Dec. 31, 2024 |
529 Accounts |
| Taxable Years Beginning After Dec. 31, 2025 |
Trump Accounts |
| Contributions not accepted before July 4, 2026 |
Qualified Small Business Stock |
| Changes generally apply to qualified small business stock acquired after July 4, 2025 |
Remittance Transfers |
| Transfers made after Dec. 31, 2025 |
Business Tax Provisions
General Description | OBBBA Summary | Effective Date |
Excessive Employee Remuneration |
| Taxable Years Beginning After Dec. 31, 2025 |
Business Interest Expense Limitation |
| Generally, Taxable Years Beginning After Dec. 31, 2024, except (3) is effective for Taxable Years Beginning After Dec. 31, 2025 |
Full Expensing of Qualified Production Property |
| Property placed in service after July 4, 2025 |
Full Expensing of Certain Business Property |
| Varies, but can apply to some property acquired after Jan. 19, 2025 |
Corporate Charitable Deductions |
| Taxable Years Beginning After Dec. 31, 2025 |
R&D Expenditures |
| July 4, 2025, but see timing rules in preceding summary |
Expensing Certain Depreciable Assets |
| Property placed in service in Taxable Years Beginning After Dec. 31, 2024 |
Energy Efficient Commercial Buildings Deduction |
| Construction of property which begins after June 30, 2026 |
Expensing of Certain Qualified Sound Recording Productions |
| Taxable Years Beginning After July 4, 2025 |
Business Meal Deductions |
| Amounts paid or incurred after Dec. 31, 2025 |
Excess Business Losses |
| (1) Taxable Years Beginning After Dec. 31, 2026 (2) Taxable Years Beginning After Dec. 31, 2025 |
Partnership Disguised Sales |
| July 4, 2025 |
Taxable REIT Subsidiaries |
| Taxable Years Beginning After Dec. 31, 2025 |
Opportunity Zones |
| July 4, 2025 |
Information Reporting |
| Payments made after Dec. 31, 2025 |
Information Reporting – Form 1099-K |
| (1) Retroactively as if included in Section 99674 of American Rescue Plan Act (i.e., for returns for calendar years beginning after Dec. 31, 2021) (2) Calendar years beginning after Dec. 31, 2024 |
This information is intended for informational purposes only and does not constitute tax, legal, investment, accounting, or other professional advice.