OBBBA, the changes you can be tested on
H.R. 1 was signed on July 4, 2025. AICPA made its 2024 and 2025 effective provisions testable on REG and TCP starting July 1, 2026.
| Brackets and standard deduction | TCJA rates are permanent. 2025 standard deduction is 15,750 single, 23,625 head of household, 31,500 joint. |
|---|---|
| SALT cap | 40,000 for 2025, rising 1% a year to 2029, phased down above 500,000 MAGI, floor 10,000. Back to 10,000 in 2030. |
| Tips and overtime | Tips up to 25,000. Overtime premium up to 12,500 or 25,000 joint. Years 2025 to 2028. |
| Senior deduction | 6,000 per person age 65 or older, 2025 to 2028, phased out above 75,000 or 150,000 joint MAGI. |
| Car loan interest | Up to 10,000 on a new US assembled personal vehicle, 2025 to 2028. |
| Child tax credit | 2,200 per qualifying child from 2025, indexed later. |
| Bonus depreciation | 100% made permanent for property acquired after January 19, 2025. |
| Section 179 | Limit 2.5 million, phase out starts at 4 million. |
| Research costs | Domestic research expensed again under Section 174A. Foreign research still amortized over 15 years. |
| Business interest | Section 163(j) again uses EBITDA based adjusted taxable income. |
| QBI deduction | 20% made permanent. From 2026 a wider phase in and a 400 minimum deduction. |
| QSBS | For stock issued after July 4, 2025: 50%, 75%, 100% exclusion at 3, 4, 5 years. Cap 15 million. |
| Estate and gift | Basic exclusion 15 million per person from 2026, indexed. |
| Charity from 2026 | Non itemizers deduct up to 1,000 or 2,000 joint of cash gifts. Itemizers face a 0.5% of AGI floor. |
| Ended credits | Clean vehicle credits ended for vehicles acquired after September 30, 2025. Home energy credits ended after 2025. |
| Information returns | 1099-K back to 20,000 and 200 transactions. 1099-NEC and MISC threshold 2,000 from 2026. |