Introduction:
The Senate has passed its version of the budget reconciliation bill, known as the “One Big Beautiful Bill Act,” (or OBBA) which includes significant tax changes affecting individuals and businesses. Read more to get highlights of the main tax provisions outlined in the bill.
Source: theguardian.com+13journalofaccountancy.com+13journalofaccountancy.com+13
The Senate has passed its version of the budget reconciliation bill, known as the “One Big Beautiful Bill Act,” (or OBBA) which includes significant tax changes affecting individuals and businesses. Read more to get highlights of the main tax provisions outlined in the bill.
Source: theguardian.com+13journalofaccountancy.com+13journalofaccountancy.com+13
- Extension of Tax Cuts and Jobs Act (TCJA) Provisions:
The bill extends many expiring provisions from the TCJA, making permanent certain tax rates and deductions that were set to expire.Source: journalofaccountancy.com+8journalofaccountancy.com+8en.wikipedia.org+8 - Deductions for Tips and Overtime Pay:
To support workers, the bill introduces deductions that eliminate income taxes on certain tips and overtime pay, aiming to increase take-home pay for service industry employees.Source: journalofaccountancy.com+1nypost.com+1 - Changes to Corporate Foreign Income Taxation:
The legislation revamps provisions related to the taxation of corporations’ foreign income, potentially impacting multinational companies’ tax liabilities.Source: journalofaccountancy.com - Termination of Clean Energy Tax Incentives:
A significant shift in energy policy, the bill terminates a large number of clean energy tax incentives, affecting investments in renewable energy projects.Source: journalofaccountancy.com+1wsj.com+1 - AICPA’s Perspective:
Mark Koziel, CPA, CGMA, President and CEO of the AICPA, referred to the bill as “a win for millions of businesses, taxpayers, and tax practitioners across the country.” He acknowledged that while no bill is perfect, the tax provisions support the business community and facilitate earlier tax planning, reducing uncertainty for taxpayers.Source: journalofaccountancy.com+1journalofaccountancy.com+1
Conclusion:
The Senate’s budget reconciliation bill introduces substantial tax changes with far-reaching implications for individuals and businesses. Tax payers are encouraged to review the provisions in detail and consult with tax professionals to understand the potential impacts.
Source:
Nevius, A. M. (2025, June 29). Tax provisions in the One Big Beautiful Bill Act. Journal of Accountancy. Retrieved from https://www.journalofaccountancy.com/news/2025/jun/tax-changes-in-senate-budget-reconciliation-bill/