A closer look: Inside the new tax law
The new tax law (commonly referred to by its unofficial name, the One Big Beautiful Bill Act):
Dozens of tax benefits that were previously expired or were set to expire at the end of this year will now continue for both businesses and individuals, thanks to sweeping new legislation signed into law by President Donald Trump on July 4, 2025. In addition to extending existing provisions, the law introduces a series of new tax cuts aimed at reducing burdens on working Americans and designed to enhance economic competitiveness. It also makes substantive changes to key features of our international tax rules. It further includes revenue-raising provisions - such as the repeal or phase out of certain clean energy tax credits - to help offset some of the law’s fiscal impact.
These changes signal yet another evolution in the tax landscape - one that presents both immediate opportunities and long-term planning considerations. While some provisions have been permanently embedded into the tax code, others are temporary and require careful attention to timing and strategy. This publication is designed to help you navigate the current environment and prepare for what lies ahead.
Key takeaways
- Know what’s permanent: The new law permanently extends several provisions into the tax code. For individuals, this includes maintaining the modified tax brackets and lower tax rates put in place by the TCJA, including the top marginal tax rate of 37 percent. For businesses, it permanently extends 100 percent bonus depreciation, the immediate deduction for domestic R&D expenses, and a more generous formula for deducting net business interest - offering continued relief for businesses and entrepreneurs.
- New tax cuts: Fulfilling several high-profile campaign promises, the new law introduces temporary tax relief measures effective through 2028. These include new deductions for tipped wages, overtime pay, and certain car loan interest payments. A new deduction for senior citizens also provides targeted relief for older Americans.
- Changes to clean energy provisions: The Act’s revisions to clean energy incentives - some expanded, others curtailed - introduce a new strategic landscape for businesses in the sector. Companies will need to reassess their investment plans and project timelines to align with the updated eligibility criteria. For those able to adapt quickly, the changes may unlock new opportunities for growth, innovation, and competitive advantage in a rapidly evolving policy environment.
- International tax: The package makes some generally taxpayer friendly changes to FDII and GILTI, but those are paired with reductions in the deduction rates that will make modeling of their impacts on every multinational client an immediate priority.
Although the legislation has been signed into law, the work doesn’t stop here - strategic planning is just beginning. The One Big Beautiful Bill Act introduces a mix of permanent and temporary tax provisions, and understanding which provisions fall into each category is essential for making informed decisions.
This publication is your guide to navigating the new tax landscape. With the potential for further changes on the horizon through the regulatory process, it’s more important than ever to understand, analyze, and act. By breaking down complex topics, highlighting key timelines, and offering fresh perspectives, this edition is designed to help you prepare - not just for today, but for the weeks and months ahead.
