Inside the One Big Beautiful Bill Act: A deep dive into its tax provisions
Your central source for in-depth analysis of the One Big Beautiful Bill Act. Stay informed with insights and commentary from our trusted leaders, featuring detailed articles on each tax provision and its implications.
Inside the One Big Beautiful Bill Act: A deep dive into its tax provisions
On July 4, 2025, President Trump signed into law the sweeping tax reform and spending reconciliation bill known as the One Big Beautiful Bill Act (OBBBA). The bill's enactment marks a major legislative achievement for the president, House Speaker Mike Johnson (R-LA) and Senate Majority Leader John Thune (R-SD). First introduced in the House of Representatives on May 20, 2025, the OBBBA (P.L. 119-21) includes major tax reform and spending cuts, and reignited debates over tax policy, fiscal responsibility and the role of government spending. It comes at a critical juncture as certain provisions of the Tax Cuts and Jobs Act (TCJA) were set to sunset at the end of 2025.
Negotiations over the bill’s more controversial tax provisions, such as the increase of the state and local tax (SALT) deduction, the repeal and phaseout of certain Inflation Reduction Act (IRA) credits and Medicaid reforms, were long debated in both the House and the Senate as Republicans raced for the July 4 goal.
With the newly enacted bill officially signed into law, Baker Tilly is closely monitoring the long-term impacts. This page serves as a guide to everything you need to know about the One Big Beautiful Bill Act tax provisions, which will be regularly updated with key insights and important information on how this legislation impacts taxpayers across the U.S.
One Big Beautiful Bill Act: Overview of key tax provisions and takeaways
This comprehensive package from our national tax professionals breaks down the OBBBA’s most impactful provisions, spanning business, individual, international and clean energy tax reforms.
Tax updates
Explore our in-depth articles for a clear, industry-neutral look at how the bill reshapes tax policy.
IRS releases guidance on new foreign income tax allocation under OBBBA
The IRS and Treasury recently issued Notice 2025-72, delivering critical guidance on the OBBBA repeal of the one-month deferral election under section 898. The guidance offers relief in providing for the allocation of foreign income taxes of affected foreign corporations between a one-month short period and the succeeding taxable year, thereby mitigating the potential loss of foreign tax credit.
Tactical tips on taxing tips (and overtime)
While on the campaign trail, President Trump promised to eliminate taxes on tips. The enactment of the OBBBA is the first step to fulfilling the president’s promise. The OBBBA introduced a temporary federal income tax exemption on tips and overtime.
Revamp and rebrand of the GILTI regime in the One Big Beautiful Bill Act
The OBBBA has made key changes to the existing global intangible low-taxed income (GILTI) regime as tax practitioners have come to know it. This article provides insight on the changes, along with 10 key planning considerations.
Domestic research expenditures, section 174, under the One Big Beautiful Bill Act
The OBBBA introduces a permanent change to how domestic research expenses are treated for tax purposes. This overview highlights key provisions of the OBBBA and important planning considerations for the 2024 tax filing season.
Five key takeaways on the Opportunity Zones extender in the One Big Beautiful Bill Act
The OBBBA made the Opportunity Zone program permanent. This article details the new zones, stricter reporting requirements and penalties. It highlights key planning considerations for investors and advisors navigating these changes.
Changes to section 1202, Qualified Small Business Stock, in the One Big Beautiful Bill Act
The OBBBA introduces several changes to IRC section 1202 such as reducing the holding period for Qualified Small Business Stock (QSBS), raising the gain exclusion cap from $10 million to $15 million and broadening shareholder eligibility.
Get up to speed with announcements related to IRA amendments
One Big Beautiful Bill Act was signed into law on the Fourth of July
President Trump’s signature activates sweeping changes to sections 45Y, 48E and other IRA incentives
Related insights
Dive deeper into the implications of the One Big Beautiful Bill Act and uncover the legislative path that brought us here. From political negotiations to policy shifts, explore how this landmark tax reform came to life and what it means for the future.
New Treasury guidance on “beginning of construction” rules
Beginning of construction rules for energy projects under OBBBA now affect CEITC/CEPTC phaseout timing and eligibility requirements.
Understanding the One Big Beautiful Bill Act and the impacts on the LIHTC industry
This insightful on-demand webinar highlights the significant impacts of the One Big Beautiful Bill Act on the Low-Income Housing Tax Credit (LIHTC) industry.
Understanding foreign entity of concern (FEOC) provisions in the OBBBA of 2025
Foreign entity of concern rules in the OBBBA expand clean energy tax credit restrictions, reshaping eligibility and compliance starting in 2026.
One Big Beautiful Bill Act: Key provisions that will impact tax-exempt organizations
Discover how the One Big Beautiful Bill Act impacts your tax-exempt organization.
Five key takeaways on the Opportunity Zones extender in the One Big Beautiful Bill Act
The One Big Beautiful Bill Act made the Opportunity Zone program permanent; however, several changes were made. Read our article to learn more.
Five key takeaways for individual taxpayers from the One Big Beautiful Bill Act
This article provides an overview of significant changes in legislation for individual taxpayers due to the enactment of the One Big Beautiful Bill Act.
Tax Trends: Quarterly tax roundtable - July 2025
Baker Tilly’s national tax professionals explore key tax changes in the One Big Beautiful Bill Act, an overview of Republican tax reform.
Changes to section 1202, Qualified Small Business Stock, in the One Big Beautiful Bill Act
President Trump signed the OBBBA, expanding IRC Section 1202 by raising QSBS eligibility and allowing greater gain exclusion for qualified shareholders.
Facing the future: How higher education institutions can thrive under a new federal compact
Higher education institutions must transform their business and operating models in response to profound changes in the federal budget.
Tax policy update: Senate-approved tax reform bill key provisions and takeaways
The recently Senate-approved sweeping tax reform and spending bill would provide for the permanent extension of key business tax breaks and soon-to-expire individual provisions enacted under the Tax Cuts and Jobs Act.
The “One Big Beautiful Bill” passed in the Senate with amendments to the Inflation Reduction Act
The “One Big Beautiful Bill” passed in the Senate with Inflation Reduction Act amendments that impact clean energy tax credits and adjust FEOC restrictions.
June 2025 Policy Pulse
Key tax policy news and analysis on legislative and regulatory tax developments, including proposed changes to the One Big Beautiful Bill
Senate Finance Committee releases Inflation Reduction Act amendments to the “One Big Beautiful Bill”
Senate Finance Committee proposes Inflation Reduction Act amendments to H.R. 1, adding flexibility to clean energy tax credit sunsets and adjusting FEOC restrictions.
“Beautiful Bill” brings significant changes to the Inflation Reduction Act
House amendment to H.R. 1 brings changes to Inflation Reduction Act, accelerating sunsets and adding FEOC compliance—impacting 45Y, 48E, 45U and more.
House approves sweeping tax reform, spending cuts bill; now heads to Senate
On the morning of May 22, 2025, the House of Representatives passed a sweeping reconciliation bill that includes major tax reform and spending cuts, some of which would become effective this year.
How the proposed House Republican tax plan impacts the IRA and energy-related tax credits and incentives
The proposed Republican tax plan significantly impacts IRA and energy-related tax credits and incentives.
May 2025 Policy Pulse
This article provides an in depth tax policy update as Republicans race against the clock in an attempt to send their multi-trillion tax reform package to President Trump’s desk by July 4.
In the news
Baker Tilly professionals
Learn more about the people here to help you navigate this changing landscape
The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Tax information, if any, contained in this communication was not intended or written to be used by any person for the purpose of avoiding penalties, nor should such information be construed as an opinion upon which any person may rely. The intended recipients of this communication and any attachments are not subject to any limitation on the disclosure of the tax treatment or tax structure of any transaction or matter that is the subject of this communication and any attachments.