JPresident Donald Trump has signed the One Big Beautiful Bill Act into law.
Tax Relief & Credits
- No Tax on Tips & Overtime: Eliminates federal income taxes on service workers’ tips and overtime pay. Under the new law, workers can earn up to $25,000 in tips and $12,500 in overtime each year without paying federal income tax.
- Permanent 2017 Rates: Makes individual and corporate rates from the 2017 Tax Cuts and Jobs Act permanent.
- SALT Cap: Raises the state and local tax deduction cap to $40,000 for joint filers earning under $500,000.
- Child Tax Credit: Increases credit to $2,500 per qualifying child through 2028.
- Senior Deduction: Creates a new $6,000 “senior bonus” deduction for taxpayers 65 and older.
Medicaid & Food Assistance
Adds 80-hour monthly work requirements for SNAP, $35 Medicaid co-pays, and shifts more costs to states.
- Coverage Impact: CBO projects nearly 12 million fewer insured by 2034.
Immigration & Border Security
- $350 Billion Allocation: Funds wall construction, new detention centers, and ICE staffing to support up to 1 million removals annually.
Defense & Energy
- Defense Boost: Sets aside part of $350 billion for weapons, including $25 billion for the “Golden Dome” missile-defense system.
- Clean-Energy Rollback: Phases out solar and wind tax credits from the Inflation Reduction Act.
Additional Provisions
- Gambling Loss Deductions: Deduct 90% of losses against winnings starting in 2026.
- Charitable Giving: Non-itemizers can deduct up to $1,000 (single) or $2,000 (joint).
- Auto Loan Interest: Deduct up to $10,000 on U.S.-assembled car loans through 2028.
- MAGA Baby Accounts: Deposits $1,000 per newborn into tax-free savings.
- Remittance Fee: Adds 5% charge on money transfers overseas.
- AI Regulation Ban: Blocks state/local AI laws for 10 years.
- Endowment Excise: Adds tiered taxes on large college and foundation endowments.
- Permitting Reform: Speeds environmental reviews for oil, gas, and mining.
