What the One Big Beautiful Bill Act Means for Your Taxes in 2025 | Lepper & Company
On July 1st, 2025, the Senate narrowly passed a sweeping piece of legislation informally dubbed the One Big Beautiful Bill Act, reviving many of the soon-to-expire provisions from the 2017 Tax Cuts and Jobs Act (TCJA) while layering in bold new tax changes aimed at both individuals and business. While the bill must still survive a contentious return to the House, its current form presents significant implications for our clients, especially those who lead or own businesses, manage estates, or are planning long-term financial strategies.
TCJA Provisions Made (Mostly) Permanent
At the heart of the bill is the permanent extension of several TCJA provisions that were set to expire in 2025. These include: 
- Lower individual tax brackets (10% to 37%)
- Higher stand deductions
- Elimination of personal exemptions
- Continued cap on state and local tax (SALT) deductions, though temporarily raised to $40,000
- Enhanced child tax credit, now $2,200 and indexed for inflation
For business owners, this offers welcome predictability in income tax planning. The continuation of the 20% Qualified Business Income (QBI) deduction under Section 199A is particularly critical for pass-through entities like S corporations and partnerships.
Key Business Provisions: Bonus Depreciation, R&D, and More
The Senate bill would make 100% bonus depreciation permanent for qualified property purchased after January 19th, 2025. Which is an essential win for capital-intensive businesses planning major investments. Additionally, the bill restores the ability to fully deduct domestic research and experimental (R&E) expenditures, reversing a recent change that forced amortization over five years.
Other business-facing highlights include:
- Increased Section 179 expensing limits
- Favorable adjustments to low-income housing credits
- Continued deduction for FDII and GILT (albeit at slightly reduced rates)
These changes reinforce Congress’s intent to incentivize domestic innovation and investment. Moves that strategic CFOs and controllers will want to factor into multi-year planning.
Target Relief for Workers and Families
The bill adds several new individual deductions aimed at specific voter groups:
- A deduction for up to $25,000 in tip income, and $12,500 for overtime pay
- Up to $10,000 in interest on automobile loans
- Special $6,000 deductions for seniors between 2025 and 2028
- Creation of “Trump Accounts” – newborn savings vehicles funded with $1,000 at birth.
Although capped and phased out at higher income levels, these deductions may meaningfully affect tax planning for employees in hospitality, retail and service sectors.
Estate and Gift Tax Planning: Act Now
The estate tax exemption, which was scheduled to drop sharply in 2026, would be reset to $15 million per individual, adjusted for inflation. Business owners and high-net worth families considering trusts, gifts, or succession planning should evaluate this development immediately, as it may help the most tax-efficient strategies for years to come.
What Gets Cut: Green Energy and IRS Direct File
To offset the nearly $5 trillion price tag, the bill eliminates or scales back many of the green energy tax credits introduced by the Inflation Reduction Act of 2022. Including incentives for electric vehicles and home energy efficiency. Additionally, it terminates the IRS Direct File program, redirecting focus toward private-public partnerships for free tax filing.
Legislative Uncertainty: Be Prepared for Changes
Despite Senate passage, the bill faces a challenging road in the House, where fiscal hawks and moderates are split on both the cost and the social safety net cuts used to fund the package. With self-imposed GOP deadline of July 4 and the looming debt ceiling crisis in August, final compromises may still emerge. We are tracking developments daily and will keep you informed.
Final Thoughts for Our Clients
This legislation, while politically charged, offers opportunities for tax savings and strategic planning, but also introduces complexity. Whether you are considering equipment purchases, R&D reinvestments, estate planning, or simply optimizing personal deductions, now is the time to revisit your tax strategy.
At Lepper & Company, we specialize in turning complex tax law into clear, actionable strategies. Let us help you get ahead of the changes – and stay there. Our advisory team is prepared to help you navigate these changes and implement smart, proactive solutions tailored to your goals.
If you have questions or want to schedule a mid-year tax review to assess how the proposed legislation may impact your 2025 and beyond, please don’t hesitate to contact us. Our team is ready to tailor a proactive tax strategy that works for you, your business, and your future.
