On July 3, the U.S. House of Representatives passed H.R. 1, the One Big Beautiful Bill Act (OBBB), sending it to President Donald Trump for his signature. The House passed the version of the bill that was passed July 1 in the Senate, which included the Senate manager’s amendment. The bill was signed into law by the president on July 4.
The OBBB extends many provisions from 2017’s Tax Cuts and Jobs Act (TCJA) that were set to expire. It also addresses other tax priorities of the Trump administration, including providing deductions to eliminate income taxes on certain tips and overtime pay. The bill additionally modifies some of the TCJA’s provisions on the taxation of corporations’ foreign income and eliminates multiple clean energy tax incentives.
Among several provisions relevant to CPAs, the bill:
- Expands the use of Section 529 accounts for costs associated with obtaining a post-secondary credential
- Repeals the lowered threshold for Form 1099-K
- Makes permanent the 100% bonus depreciation
- Makes permanent the Section 199A qualified business income deduction
- Extends and enhances the Paid Family and Medical Leave Tax Credit
- Removes the restriction on the regulation of contingency fees
- Retains current rules around the excess business losses limitations
- Removes the limit on pass-through businesses’ state and local tax (SALT) deductions
The AICPA has published two downloadable charts detailing final legislation language and comparison across the 2025 House and Senate reconciliation bills. One chart details key tax differences and one focuses on planning opportunities. The AICPA is currently offering the charts for free for a limited time.