The One Big Beautiful Bill Act contains hundreds of provisions. It permanently extends the individual tax rates Trump signed into law in 2017, including Qualified Opportunity Zones, which were set to expire at the end of 2025-2026. It raises the cap on the state and local tax deduction to $40,000 for taxpayers making less than $500,000, with the cap reverting to $10,000 after five years. The OBBBA includes several tax deductions for tips, overtime pay, and auto loans, and creates Trump accounts, allowing parents to open tax-deferred accounts for their children’s benefit; all are set to expire in 2028. It includes a permanent $200 increase in the child tax credit, a 1% tax on remittances, and a tax hike on investment income from college endowments. It phases out some clean energy tax credits from the Biden-era Inflation Reduction Act and promotes fossil fuels over renewable energy. It increases a tax credit for advanced semiconductor manufacturing and repeals a tax on firearm silencers.
« Back to Glossary Index« Back to Glossary Index