One Big Beautiful Bill summary and tax changes
Update 8/7/2025:
Applying the One Big Beautiful Bill changes to ProConnect Tax 2024:
Updated: Download our One Big Beautiful Billinfographic to get a clear, easy-to-digest breakdown of what’s changing — and what’s not — under the latest tax reform. Download our infographic here
Join us for the Big Beautiful Bill Act - Analysis & Insights Webinar 7/29/25
This webinar provides tax and accounting professionals with a comprehensive update on the "Big Beautiful Bill Act." The session will cover the tax law changes associated with this newly passed legislation. Additionally, the speakers will share any tax planning tips and insights; impact to the professionals and clients; examples; and impact to the tax return.
The legislation being referred to as One Big Beautiful Bill is set to become law, bringing significant changes to the tax code and beyond. The Bill permanently extends certain provisions from the Tax Cuts and Jobs Act (TCJA) that were set to expire, including an increased state and local tax (SALT) deduction cap, and introduces changes to taxes on tips and overtime for certain workers. Impacts to energy credits, Medicaid, the debt ceiling, and student loans are also included.
Key things you need to know
- Most of the new tax laws under the One Big, Beautiful Bill don’t kick in until tax year 2025 (the taxes you file in 2026). A few uncommon provisions are retroactive to tax year 2024, and our ProTax offerings (Intuit® ProConnect™ Tax, Lacerte® Tax, and ProSeries® Tax) will be up to date with those when it’s time for you to file.
- Our tax products will be updated in accordance with the new tax laws and IRS guidance when the new tax laws take effect.
- Please use this article to familiarize yourself with the latest tax law changes and feel free to share with your clients as you help them plan ahead.
As you follow the news about the One Big Beautiful Bill, you might be wondering about the key tax provisions that have passed. Questions like: Are tips and overtime now tax-free? What’s happening with SALT? And most importantly, how do the new tax laws impact your financial situation?
Here are some of the top questions we’re getting, along with the answers.
What key provisions passed under the One Big Beautiful Bill?
Key provisions of the One Big Beautiful Bill include:
- Increases the SALT cap to $40,000 if you earn up to $500,000
- Qualified tip income deduction
- Qualified overtime pay deduction for certain
- Deduction for auto loan interest for certain vehicles
- Child Tax Credit expansion
- Enhanced deduction for seniors
- Repeal of energy efficient credits for EVs, hybrids, charging, and energy efficient home improvements beginning in 2025
- Permanently extends the deduction for qualified business income at 20%
- Reforms Medicaid
- Reforms Pell Grants and student loans
When do the new tax laws go into effect?
The majority of the tax provisions will go in effect in tax year 2025 (the taxes you file in 2026) and some for 2026. Our tax products will be up-to-date in accordance with these provisions.
For more in depth information see here.
