On July 4, 2025, President Trump signed H.R. 1, also referred to as the “One Big Beautiful Bill,” into law. This new legislation includes a range of business-focused provisions poised to boost American economy. Below are some of the most significant provisions. To access the bill in its entirety, click HERE.

• Child Tax Credit (CTC): Permanent increase of $2,200 per child, with a $1,700 tax credit for 2025, adjusted with inflation. Effective in 2026.
• No Tax on Tips: Allows deduction of up to a $25,000 per taxpayer for qualified tips received in certain occupations (as defined by Treasury). The deduction would begin to phase out when the taxpayer’s modified adjusted gross income exceeds $150,000 ($300,000 for MFJ). This provision expires in 2028.
• No Tax on Overtime: Allows deduction of up to $12,500 per taxpayer, subject to an income limitation, for qualified overtime compensation (excludes highly compensated employees and tips). This provision expires after 2028. The deduction would begin to phase out when the taxpayer’s modified adjusted gross income exceeds $150,000 ($300,000 for MFJ).
• Enhanced Deduction for Seniors: The proposal adds $6,000 bonus deduction for ages 65+ for tax years 2025 through 2028. The deduction is reduced by 6% and would begin to phase out when the taxpayers modified adjusted gross income exceeds $75,000 ($150,000 for MJF).
• No Tax on Car Loan Interest: Allows deduction for up to $10,000 of interest on new car loans for tax years 2025 through 2028. To qualify, must be a US-assembled passenger vehicle, with the vehicle serving as security for the loan. The deduction would begin to phase out when the taxpayer’s modified adjusted gross income exceeds $100,000 ($200,000 for MJF).
• 199A, Qualified Business Income Deduction (QBI): Deduction remains at 20% and is now permanent. Phase-out amounts are increased (expands the deduction limit phase-in range by increasing the $100,000 (MFJ) and $50,000 (Single) amounts to $150,000 and $75,000, respectively), and a new minimum $400 deduction is added for taxpayers with at least $1,000 of QBI.
• Form 1099 Information Reporting: The legislation increased 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.
• Research and Experimental (R&E) Expensing: Allows full expenses for domestic R&E from Jan. 1, 2025. Foreign R&E remains at 15-year amortization. In addition, small businesses have the option to apply this change retroactively back to 2022 through amended returns. It would also allow taxpayers to accelerate any remaining Sec. 174 deductions.
• Bonus Depreciation: Permanently extends and modifies additional first year depreciation deduction. Allowance is increased to 100% of property acquired and placed in service on or after Jan. 19, 2025.
• 179, Enhanced Small Business Expensing: This provision increases the maximum amount a taxpayer may expense under Sec. 179 to $2,500,000, and increases the phaseout threshold amount to $4,000,000.
• 30D, Clean Vehicle Credit: The current credit of up to $7,500 per new clean vehicle terminates for vehicles acquired after Sept. 30, 2025.
• Estate Planning: Increases the estate, gift, and generation-skipping tax exemption amount to $15 million, adjusted due to inflation and is now permanent, effective Dec. 31. This provision replaces the temporary TCJA’s $10 million exemption, adjusted to $13.99 million in 2025.
• Charitable Deductions: Taxpayers who do not itemize deductions can claim a $1,000 deduction or $2,000 for MJF. For those who itemize deductions, charitable deductions are deductible if the extent exceeds 0.5% of their adjusted gross income. The disallowed portion may be carried forward if the taxpayer has additional charitable carryforwards from the same tax year.
• Individual Trust Accounts (Trump Accounts): Yes, you read that correctly. The new Individual Trust Accounts is designed to benefit children under the age of 18, to be used for education, small business investments, and first-time home buyer purchases. The annual contribution for Individual Trust Accounts is capped at $5,000. This provision also includes a one-time government contribution of $1,000. The qualifying children must be born between Jan. 1, 2025 and before Jan. 1, 2029. Employers can also make tax-free contributions for employee Individual Trust Accounts. Effective immediately.

For more information on these and other tax provisions included in H.R. 1, please contact our team at 602.776.6300 or [email protected].