Tax Reform Signed

On July 4, 2025, President Trump signed into law HR 1, commonly referred to as the One, Big, Beautiful Bill (OBBB). We intend to cover all the important issues in more depth in the coming weeks. This overview is intended to whet your appetite for our upcoming webinar, Wednesday, July 9. The following is a brief summary of the key provisions of the bill.

• Corporate tax rate remains at 21%

• Green Energy Tax Credit transferability was maintained, fostering discounted tax credit purchases for U.S. taxpayers indefinitely

• Bonus depreciation is back to 100% for assets placed in service in 2025 through 2030

• The cap limit on state and local tax (SALT) deduction is set at $40,000, with a phaseout after $500,000 of adjusted gross income

• The deduction for pass-through entity tax (PTET) remains without the carveout for specified service trade or businesses

• The Qualified Business Income deduction (IRC Section 199) remains permanent at 20%, with some phaseout improvements

• No tax on tips and overtime income up to certain limits, including income phaseouts

• Electric vehicle credits are eliminated, and solar credits, including related energy credits, are being phased out, some as early as this year

• Modifications were made to IRC Section 250 for Foreign Derived Intangible Income and Global Intangible Low-taxed Income

• New IRC Section 174A allows current deduction of domestic research and experimentation expenditures

The material presented in this communication is intended to provide general information only and should solely be seen as broad guidance and not directed to the particular facts or circumstances of any individual who may read this publication. No liability is accepted for acts or omissions taken in reliance upon the content of this piece. Before taking (or not taking) any action, readers should seek professional advice specific to their situation from Ryan, LLC or other tax professionals.