Major Tax Law Changes Just Passed—Here’s What You Need to Know

On July 4th, President Trump signed the sweeping reconciliation package unofficially dubbed the “One Big Beautiful Bill Act.” This new legislation brings significant updates to the tax code—impacting individuals, business owners, and investors alike.

Here are just a few highlights:

• Most TCJA provisions are now permanent, including lower tax brackets and the expanded standard deduction.
• New deductions have been introduced for tip income and overtime pay.
• The SALT deduction cap temporarily increases from $10,000 to $40,000 in 2025.
• The Child Tax Credit rises to $2,200, indexed for inflation.
• Bonus depreciation and the Qualified Business Income deduction are now permanent.
• Many green energy credits are being phased out, and the IRS Direct File program is being eliminated.

These changes will influence 2025 and beyond—and could present new planning opportunities and potential pitfalls.

We’ve attached a detailed summary that breaks down the key provisions and their impact.

As always, our team is here to help you navigate these changes and adjust your tax strategy accordingly. Don’t hesitate to reach out with questions or to schedule a consultation.