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2025 One Big Beautiful Tax Bill: Key Policy Highlights at a Glance

The draft of the 2025 tax legislation, known as the "One Big Beautiful Bill Act", has been released by the House Ways and Means Committee. This comprehensive 1,116-page proposal aims to implement significant changes across tax policy, social programs, immigration, and energy sectors. Below is a detailed summary of the key provisions:

🧾 Tax Policy Changes

✅ Individual Tax Reforms

  • Extension of 2017 Tax Cuts: Permanently extends individual income tax rate reductions and the doubled standard deduction from the Tax Cuts and Jobs Act (TCJA) of 2017.

  • Child Tax Credit Enhancement: Increases the child tax credit and makes it fully refundable.

  • Elimination of Taxes on Tips and Overtime: Excludes tip income and overtime wages from taxable income.

  • Auto Loan Interest Deduction: Introduces a $10,000 deduction for interest on auto loans for American-made vehicles.

  • State and Local Tax (SALT) Deduction Cap Increase: Raises the SALT deduction cap from $10,000 to $30,000, with a phase-out for higher-income taxpayers.

  • "MAGA" Accounts for Newborns: Establishes $1,000 savings accounts for children born during Trump's second term.

✅ Business Tax Reforms

  • Section 199A Deduction Increase: Increases the Qualified Business Income deduction from 20% to 23%.

  • Bonus Depreciation Extension: Extends 100% bonus depreciation for qualifying property acquired between January 20, 2025, and December 31, 2029.

  • Research and Development Expensing: Reinstates immediate expensing of domestic research and experimental expenditures for tax years 2025 through 2029.

  • Interest Deduction Modifications: Modifies the calculation of adjusted taxable income for purposes of the business interest deduction.

  • International Tax Provisions: Extends deductions for foreign-derived intangible income (FDII) and global intangible low-taxed income (GILTI).


🧑⚕️ Social Program Reforms

  • Medicaid Work Requirements: Imposes stricter work requirements for Medicaid eligibility.

  • SNAP (Food Stamps) Restrictions: Implements tighter eligibility criteria and work requirements for the Supplemental Nutrition Assistance Program.

  • Student Loan Overhaul: Replaces existing repayment plans with two options: a standard plan and a less generous income-based repayment plan.

  • University Endowment Tax: Introduces a tax of up to 21% on certain large university endowments.


🛂 Immigration and Border Security

  • Border Wall Funding: Allocates $50 billion for the construction and maintenance of a border wall.

  • Increased Immigration Enforcement: Provides additional funding for immigration enforcement and deportation efforts.


⚡ Energy and Environmental Policy

  • Termination of Clean Energy Credits: Ends residential clean energy credits and new energy-efficient home credits after December 31, 2025.

  • Public Lands Development: Expands drilling, mining, and logging on public lands by streamlining government approvals and reducing royalty rates.

  • Sale of Public Lands: Authorizes the sale of hundreds of thousands of acres of public lands in Nevada and Utah.


💰 Fiscal Impact

  • Projected Deficit Increase: The bill is estimated to add between $3.3 trillion and $5.7 trillion to the national debt over the next decade, depending on economic growth and revenue projections.

  • Spending Cuts: Proposes $1.5 trillion in spending cuts, primarily from Medicaid, SNAP, and clean energy programs.

This draft legislation represents a significant shift in federal policy, with substantial tax cuts and spending reductions. As the bill progresses through Congress, it is subject to amendments and further debate.

By Amir Naghshineh-Pour, Commpex Tax Strategies. At Commpex Tax Strategies, we specialize in proactive tax planning, asset protection, advanced financial strategies, and IRS resolution services—helping individuals and business owners save tens of thousands in taxes annually.

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