On July 4, 2025, sweeping federal tax legislation—known as the “One Big Beautiful Bill Act”—was signed into law, marking the most significant update to U.S. tax policy since the 2017 Tax Cuts and Jobs Act (TCJA). This new law introduces substantial changes that will affect both individuals and businesses.
Key Highlights
- Permanent Extension of Key TCJA Provisions: Several tax rate structures and deductions introduced in 2017 have now been made permanent.
- Business-Friendly Updates: Provisions favorable to business owners have been restored, including bonus depreciation and expanded R&D expensing.
- Clean Energy Rollbacks: Many clean energy credits are being reduced or phased out sooner than anticipated.
- International Tax Changes: The legislation includes a restructured international tax framework impacting multinational operations.
- Additional tax deductions: Partial tax exemptions on tips and overtime and additional standard deduction for senior citizens.
What to Expect Next
While the legislation is now law, many provisions require clarification. The IRS is expected to issue regulations and guidance in the coming months to help interpret and implement key parts of the law.
We’re closely monitoring developments and will provide updates as more information becomes available, particularly as it relates to income thresholds, phaseouts, and changes to deductions that may impact your planning.
Stay Informed
This is a pivotal moment in tax policy. Whether you’re an individual taxpayer, business owner, or advisor, early awareness and thoughtful planning will be essential. Our team at LGA is here to help you navigate these changes as details emerge.
Please reach out to your LGA advisor with any questions or to discuss how this legislation may affect your specific situation.
