Independence Day One Big Beautiful Bill Ushers In Sweeping Individual and Corporate Tax Changes

President Donald Trump (R) signed the One Big Beautiful Bill (OBBB) Act on 4 July 2025, delivering sweeping individual and corporate tax changes.

The law permanently extends the Tax Cuts and Jobs Act rate schedule, boosts the standard deduction, and cements the 20% qualified-business-income deduction while temporarily lifting the state-and-local-tax cap to USD 40,000, and makes other individual tax changes. For more information on the individual tax changes, see One Big Beautiful Bill Act Locks In TCJA Individual Income Tax Rates, Hikes SALT Deduction Cap to USD 40,000, Makes Other Changes (7 July 2025).

For corporations, it resets the base erosion and anti-abuse tax to 10.5%, rebrands GILTI as "net CFC tested income," slashes the section 250 deduction to 40% / 33.34%, makes 100% bonus depreciation, restores immediate expensing for domestic R&D under new IRC section 174A, sunsets many Inflation Reduction Act clean energy and vehicle credits, and makes other corporate tax changes (see One Big Beautiful Bill Act Rebrands GILTI, Hikes BEAT to 10.5%, Slashes Section 250 Deduction, Makes Other Corporate Tax Changes (7 July 2025)).

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